The proposed Ontario Retirement Pension Plan (ORPP) is to be introduced on January 1, 2017
On August 11, 2015, the Ontario Government released further details regarding the proposed Ontario Retirement Pension Plan (ORPP), which is to be introduced on January 1, 2017. The ORPP is designed to provide a predictable source of retirement income for Ontarians and act as an alternative to expansion of the Canada Pension Plan (CPP). Subject to legislative approval, the Ontario government intends to ensure that by 2020, “every employee in Ontario will be part of either the ORPP or a comparable workplace pension plan”. By 2020, employees and employers who participate in the ORPP will each be subject to an annual contribution rate of 1.9% of employment income.
Highlights of the announcement include:
- Further details on what will be considered as a “comparable” workplace pension plan, including exemptions for employers offering a Defined Benefit or Defined Contribution plan that meet specified tests for comparability;
- Details on the enrollment schedule for plans, including the phased in enrolment based on employer size and whether or not the employer maintains a registered pension plan as of August 11, 2015; and
- Details on the phasing in of contribution requirements for participating employers and employees joining before January 1, 2020.
This bulletin is designed to provide clients with an update on the Ontario Retirement Pension Plan and an overview of next steps.
Please click on the following link to download the PDF of the full article: