Ontario has announced new decisions on the proposed design of the Ontario Retirement Pension Plan (ORPP) — another step in delivering on its commitment to strengthen retirement income security for the two-thirds of Ontario workers without a secure workplace pension plan.
Premier Kathleen Wynne joined Minister of Finance Charles Sousa and Associate Minister of Finance Mitzie Hunter today to share information on a range of decisions, including the structure of ORPP benefits, compliance and enforcement, plan comparability and member participation. “Our government is unwavering in its focus on ensuring a financially secure retirement for every worker in our province through the Ontario Retirement Pension Plan,” Wynne said.
The government also released details on the ORPP’s funding policy. Employers will be expected to make contributions, and collect them from workers. Changes can only be made with approval of 60% of the plan’s members. “We’ve shown tremendous progress on our commitment to build the ORPP as a strong, stable, and sustainable plan,” Hunter added.
The details released today, combined with details released last August, will help employers prepare for the implementation of the ORPP, beginning on January 1, 2017.
Ontario has made significant progress on the ORPP in recent months. This includes the Ontario Retirement Pension Plan Administration Corporation appointing a CEO and Board of Directors, passing two pieces of enabling legislation and releasing key design and implementation details.
Studies show that many Ontarians are not able to save enough to maintain a similar standard of living when they retire. For many workers, long-term, full-time employment with pension benefits is no longer attainable. Today’s announcement brings the government closer to achieving its goal of ensuring that every eligible Ontario employee is part of the ORPP or a comparable workplace pension plan by 2020. The federal Income Tax Act (I.T.A.) doesn’t allow self-employed to participate in registered pension plan including the O.R.P.P. “The province will continue ton explore options to enable the participation of the self-employed in the O.R.P.P.” Scott Blodgett Ministry of Finance spokesperson said.
ORPP plan design details have now been shared with the Canada Revenue Agency.
Building a secure retirement savings plan is part of the government’s plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan also includes investing in people’s talents and skills, making the largest investment in public infrastructure in the province’s history and creating a dynamic, supportive environment where business thrives.
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