Published on: 19/08/2015

On August 11, Premier Kathleen Wynne laid out the initial details and implementation plan for the upcoming Ontario Retirement Pension Plan (ORPP). The plan was initially introduced in 2014 as a supplement to the Canada Pension Plan for Ontario workers and became a central pillar for the Ontario Liberal Party election platform during the June 2014 campaign.

Details of the plan are now being introduced, with some of the more relevant points included below for reference.

• Mandatory contributions of 1.9% of a workers income are required up to $90,000, which will be matched by an employer contribution of 1.9%. For those at the maximum income, the total cost would be $3,420 per year.

• The province will include a comparability component for those employers who already have a retirement plan in place for workers (including defined contribution and defined benefit pension plans), but the exemption requirements are quite strict. Details of the required equivalencies can be found here.

• The ORPP will be implemented in four phases. Large employers (500+ employees) without a registered retirement plan will begin contributions on January 1, 2017. Medium employer (50-499 employees) will begin on January 1, 2018. Small employers (less than 50 employees), as well as the self-employed, will begin paying on January 1, 2019. Businesses with workplace pension plans that fail to modify their plans to meet the comparability requirements will begin contributions on January 1, 2020.

• Benefit payouts will begin in 2022 for people over the age of 65, but only for those who have contributed.

• The cost to administer this program is not yet known, but government estimates range between $135 and $200 per person per year.

Further details about the ORPP will be communicated out once they are made available. If you have any questions or concerns with the information included in the attached bulletin, please contact Patrick McManus (905-629-7766 ext. 222 or patrick.mcmanus@oswca.org).

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