Important Ontario Registered Pension Plan (ORPP) Update
On January 26, 2016, the Ontario Liberal Government released additional design details regarding the Ontario Retirement Pension Plan (ORPP).
Some key design details released for employers include—but are not limited to—information regarding the ORPP plan comparability test, waiting periods, the definition of employment in Ontario, and eligibility and opt-in timelines. Employers are encouraged to review the full release of details included in this link.
The legislation comes into effect January 1, 2017, but includes a phased implementation schedule for employer/employee enrolments and contribution amounts:
We believe it is paramount for employers to be proactive in preparing for ORPP implementation—taking this opportunity to review current plan needs and comparability, to educate leadership on the implications, and to prepare communication strategies that assist in educating employees on potential future contributions or required plan changes.
If you require assistance to review your current retirement plan and ensure it is comparable—or if you would like more information regarding the applicability of the ORPP and its released details on your organization—please contact your Pension Consultant at 1-866-912-6926.
In case you missed it:
August 12, 2015: Defined Contribution Pension Plans Exempt from Ontario Retirement Pension Plan—with conditions
February 9, 2015: How the proposed legislation framework could affect you and your employees
September 2, 2014: Ontario Retirement Pension Plan (ORPP)