On December 18th, 2014, the Ontario government
released its consultation paper on the new Ontario Retirement
Pension Plan (ORPP).
What's important to note is that the government's
"preferred approach" is to impose the ORPP on Ontario
employers who have defined contribution registered pension plans,
group RRSPs, PRPPs and DPSPs. The government plans to exempt
employees who participate in comparable workplace pension plans
from participating in the ORPP, but proposes to only include
defined benefit and target benefit multi-employer pension plans in
the definition of "comparable plan". However, this could
be changed.
Not all workers in Ontario will be affected by the ORPP. The
government has confirmed that Ontario employees who work in
federally regulated sectors, such as telecommunications and
banking, will not be required to participate. In addition,
employees earning less than $3,500 and the self-employed are
proposed to be exempt from participating.
