Ontario's Finance Ministry on Thursday introduced legislation to implement the Ontario Retirement Pension Plan, Toronto, the province's proposed supplement to Canada's federal pension plan.
“Today's legislation hardwires all the critical elements of the ORPP into one comprehensive piece of legislation, giving employers and employees across the province clarity and the time they need to prepare for implementation,” said Mitzie Hunter, associate minister of finance, during a news conference announcing the bill.
The ORPP bill would require Ontario-based employees and employers to each contribute 1.9% of annual pay up to C$90,000 in 2017 dollars (currently $70,400).
Exempt workers would be those whose employers have existing defined benefit plans with an annual benefit accrual rate of at least 0.5%; defined contribution plans with a minimum 8% total contribution rate; comparable multiemployer pension funds based either on the DB accrual or DC contribution rate threshold; and pooled-registered pension funds, once they're made available in Ontario. No benefit or contribution level has yet been set for PRPPs.
ORPP, a supplement to the C$282.6 billion Canada Pension Plan, Ottawa, is scheduled to begin enrollment Jan. 1, 2017, with contributions to be phased in beginning in 2018.
The Canadian government and Ontario officials are in discussions over possible options for national enhancement of the CPP, but the Ottawa government has said Ontario is free to move ahead with its own plan.
