The Ontario Legislature on Thursday approved implementing the Ontario Retirement Pension Plan, Toronto, the province's proposed supplement to Canada's federal pension plan.
Under the bill, Ontario-based employees and employers each will contribute 1.9% of annual pay up to C$90,000 in 2017 dollars (currently $69,065).
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$278.9 billion Canada Pension Plan, Ottawa, is scheduled to begin enrollment Jan. 1, 2017, with contributions to be phased in beginning in 2018.
William Morneau, Canada finance minister, will meet with provincial finance ministers June 20-21 to discuss possible options for national enhancement of the CPP, but the Ottawa government has said Ontario is free to move ahead with its own plan.
“Our main objective is to intensively look at ways to meet the goals of the ORPP through an enhanced CPP framework, while preserving our ability to implement the ORPP, should that not be possible,” Charles Sousa, Ontario finance minister, said in a news release.
