Ontario's Finance Ministry will conduct a cost-benefit analysis of the province's proposed supplemental defined benefit plan as part of a bill approved Wednesday by the Ontario Legislature.
The bill forms the administrative foundation of the Ontario Retirement Pension Plan, which is expected to begin in January 2017. ORPP would be a supplement to the C$238.8 billion ($194.9 billion) Canada Pension Plan, Ottawa.
The cost-benefit analysis must be submitted to the provincial Legislature by Dec. 31, according to the bill.
The bill also establishes a maximum salary cap of C$90,000 for benefits and sets the contribution rate for employers and eligible employees at a maximum 3.8% each.
The legislation does not specify actual operational procedures of the ORPP, including its administration and investment management policies. Those details will require further legislation introduced by the Finance Ministry or a member of the government's executive council — the Cabinet of Premier Kathleen Wynne, including Mitzie Hunter, associate finance minister and the provincial government's executive in charge of creating ORPP.
There is no deadline for subsequent legislation, said Clancy Zeifman, Ms. Hunter's spokesman, although it would be early enough to not affect the January 2017 start date.