The Ontario government has announced further design details for
the Ontario Retirement Pension Plan (ORPP). Plan members will start
making contributions on January 1, 2017, and the ORPP will start
providing benefits in 2022. A Technical Bulletin has been released
which is intended to assist employers planning for the ORPP. Of
particular interest, the bulletin provides:
- details regarding who is covered by
the plan and who is not;
- how benefit and contribution amounts
will be calculated; and
- how those amounts may change over
time.
Background
As discussed in our November 10, 2015, ORPP and CPP: Pension
Reform Update, Ontario has been promoting both an expansion of
the federal Canada Pension Plan (CPP) and the establishment of the
ORPP. The federal government and the provinces have been discussing
CPP reform. However, with no national consensus likely in the short
term, Ontario is pressing on with the ORPP.
