Ontario鈥檚 associate finance minister is calling Prime Minister Stephen Harper鈥檚 attempt to block a proposed Ontario pension plan 鈥渟illiness.鈥�

Speaking to CTV鈥檚 Power Play, Mitzie Hunter rejected Harper鈥檚 characterization of the newly proposed provincial pension plan as a tax hike.

鈥淚 think that what Mr. Harper is saying is just silliness,鈥� said Hunter. 鈥淵ou wouldn鈥檛 call a group RSP (retirement savings plan) or a TFSA (tax-free savings account) a tax, so a pension is not a tax. A pension is part of people鈥檚 compensation.鈥�

Ontario Premier Kathleen Wynne presented her plans to establish the Ontario Retirement Pension Plan (ORPP) Tuesday in Toronto. The announcement came after the province passed legislation in April to create the plan for the more than 3.5 million Ontarians who do not have a workplace pension. There is currently no mandatory provincial pension plan in Ontario.

Harper said he was 鈥渄elighted鈥� to see that the federal Conservatives鈥� refusal to co-operate with the proposed plan was making it more difficult for the Ontario government to proceed. He vowed to continue to fight it.

While Hunter said Ontario would have appreciated the federal government鈥檚 support, via the Canada Revenue Agency (CRA), in its creation of the ORPP, they are prepared to explore other options for the administration of the plan.

鈥淲e had wanted to work with the CRA on the administration,鈥� said Hunter.

鈥淚t was actually the Harper government that responded saying that they want to stand in the way of a pension plan here in Ontario and not co-operate with us, which is highly disappointing given that there is infrastructure in place already for the CPP (Canada Pension Plan) that could have been an efficient and simple way to do this.鈥�

Hunter did not provide any further details on those other administrative options.

Wynne said Tuesday that while the government doesn鈥檛 know how much the plan will cost Ontario, it would be less complicated if it had federal support.

The ORPP would force companies to pay premiums of 1.9 per cent of each employee鈥檚 salary, up to $1,643 a year, with workers paying an equal amount. In 2017 it would start phasing in for employers with more than 500 employees and no pension, followed by medium-sized employers on Jan. 1, 2018. Companies with 50 or less workers would be ushered into program on Jan. 1, 2019.

Hunter said the Ontario government is aiming to ensure that all Ontario workers have a pension through the ORPP or a workplace pension plan by 2020.

The Harper and Wynne spat is just the latest in a recent battle between the provinces and federal government. Last week, Harper blasted Wynne鈥檚 pension plan and Alberta NDP Premier Rachel Notley鈥檚 decision to raise corporate and income taxes, prompting a very public fight between him and the premiers.

With files from the Canadian Press