Now that the 2014-2015 Ontario budget has been passed by the
Ontario legislature, Ontario employers should think about how the
new Ontario Retirement Pension Plan (ORPP) could affect them.
The ORPP is part of the Ontario government's solution to
help individuals save for retirement. It's a new
"made-in-Ontario" solution to the federal
government's inaction on expanding the CPP. The ORPP will be a
defined benefit pension plan, similar to the CPP, that will be
publicly administered at arm's length from the Ontario
government.
Mandatory participation in the ORPP is set to begin in 2017,
with enrolment occurring in stages starting with the largest
employers. Contributions will be split equally between employers
and employees, up to 1.9% each (3.8% total) on an employee's
earnings above a yet-to-be-determined minimum threshold and up to a
maximum annual earnings threshold of $90,000. The ORPP aims to
provide individuals with retirement benefits that replace 15% of
the
