Almost two years after CPP/QPP changes were announced, many Canadian employers have yet to prepare
April 18 2018 - 9:00AM
Enhancements to the Canada Pension Plan and Quebec Pension Plan
will begin to phase in next year, yet most Canadian employers have
yet to take action to prepare, according to a new report from Aon,
a leading global professional services firm providing a broad range
of risk, retirement and health solutions. Aon’s survey of 325
organizations from across the country also found that higher costs
resulting from the enhancements are a concern among employers, but
few have developed strategies for addressing cost increases and
other impacts.
Quotes:“With just months to go before the
CPP/QPP changes kick in, it’s a bit surprising to see that so few
employers have taken steps to prepare,” said William da Silva,
Senior Partner and Retirement Practice Director for Aon in Canada.
“The reasons aren’t clear, but it appears that many employers might
be underestimating the impact these legislated changes could have
on their organizations and employees, including contributions and
benefits under their current retirement programs.”
“The good news is, employers still have time to address the new
rules proactively,” added Andrew Hamilton, Partner and Ontario
Retirement Practice Leader for Aon. “Beyond preparing for increased
costs – a key concern, according to our survey – they should
develop strategies for incorporating the changes into their
employee communications, their existing retirement plans and their
overall benefits philosophy.”
Key facts:
- Only 17% of employers have started planning for CPP/QPP
enhancements.
- About two in five employers (37%) expect to prepare this year
for the CPP/QPP enhancements, while a third (32%) do not know when
they will do so.
- The chief concerns related to CPP/QPP enhancements are higher
organizational costs (68%) and higher costs for employees (53%),
followed by the impact on retirement programs (46%) and the
potential for greater administrative demands (40%).
- More than half (57%) of employers say they understand the
overall payroll costs resulting from the enhancements, but
two-thirds (69%) don’t know how they will manage the financial
impact.
- Only 6% of employers have communicated the CPP/QPP changes to
employees, but more than half plan to do so this year.
About AonAon plc (NYSE:AON) is a leading global
professional services firm providing a broad range of risk,
retirement and health solutions. Our 50,000 colleagues in 120
countries empower results for clients by using proprietary data and
analytics to deliver insights that reduce volatility and improve
performance.
Media contact For further information please
contact Alexandre Daudelin (+1.514.982.4910)
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