Ontario Retirement Pension Plan
The Ontario Retirement Pension Plan is a planned public pension plan for Ontario, Canada. Premier Kathleen Wynne of the Ontario Liberal Party has said that implementation will start in 2017 and will be completed by 2020. Larger companies will get coverage first. [1] [2] [3]
By 2020, every employee in Ontario will be part of either the ORPP or a comparable workplace pension plan.
It is intended to cover an estimated 3.5 million workers in Ontario who do not have workplace pension plans. It is designed to provide up to 15 per cent of a retiree's pre-retirement income as an annual pension, adding about the same amount as the Canada Pension Plan (CPP) for those who have contributed to both plans. Employees and employers would each contribute 1.9 per cent of an employees income up to a maximum of $90,000 of income per year. Employees who have either an employer-sponsored defined benefit pension plan, or a defined contribution pension plan which requires contributions of at least 8 per cent of pay (half provided by the employers), will be exempt from participating in the ORPP.
The program may be cancelled if the CPP is enhanced by the federal government[4]
Employer enrolment
Enrolment in the ORPP will be staged in four waves:
- Wave 1: Large employers (500 or more employees) without registered workplace pension plans. Contributions to start January 1, 2017.
- Wave 2: Medium employers (approximately 50- 499 employees) without registered workplace pension plans. Contributions to start January 1, 2018.
- Wave 3: Small employers (50 or fewer employees) without workplace pension plans. Contributions to start January 1, 2019.
- Wave 4: Employers with a workplace pension plan that is not modified or adjusted to meet the comparability test, and employees who are not members of their workplace's comparable plan. Contributions to start January 1, 2020.
References
- ^ Ashley Csanady (11 August 2015). "Ontario to start implementing new pension plan in 2017, with full roll-out expected by 2020". National Post.
- ^ "Wynne calls proposed Ontario pension plan 'right thing to do'". thestar.com. 11 August 2015.
- ^ "Ottawa has a duty to support the Ontario Retirement Pension Plan". The Globe and Mail.
- ^ "What you need to know about the Ontario Retirement Pension Plan", Janet McFarland, The Globe and Mail, Aug. 12, 2015
Further reading
- Hamilton, Malcolm. "Do Canadians Save Too Little?." Commentary-CD Howe Institute 428 (2015): 0_1. online
External links
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