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ARTICLE · 29 JANUARY 2016

The Ontario Retirement Pension Plan – An Update

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On January 26, 2016, the Ontario government released further information on the ORPP and renewed its commitment to implement the ORPP, beginning on January 1, 2017.

CanadaEmployment and HR

As we reported in 2015, the Ontario government intends to introduce the Ontario Retirement Pension Plan (ORPP) as a supplement to the Canada Pension Plan. On January 26, 2016, the Ontario government released further information on the ORPP and renewed its commitment to implement the ORPP, beginning on January 1, 2017.

The ORPP will apply to every Ontario employee who is not a member of a "comparable" workplace pension plan and will be phased in between January 1, 2017 and January 1, 2020. Participating employees and employers will be required to contribute an equal amount to the ORPP. The required contribution rate for both employees and employers will be 1.9% of an employee's annual earnings up to $90,000, subject to a minimum earnings threshold of $3,500. Prior to January 1, 2020, contribution rates will be phased in.

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