The Latest on the ORPP
In a recent statement, Charles Sousa, Ontario Minister of Finance, and Indira Naidoo-Harris, Associate Minister of Finance, confirmed the dissolution of the Ontario Retirement Pension Plan Administration Corporation, following the CPP enhancement agreement-in-principle.
To learn more, read the announcement.
The ratification of the Canada Pension Plan (CPP) enhancements deal has been delayed as British Columbia has asked for additional time to explain the deal to its residents and stakeholders, such as business owners. The consultation process should conclude by the end of the summer.
In a July 15th statement, the Honourable Bill Morneau, Minister of Finance indicated that since the Vancouver meeting last June, “all signatories [to the CPP agreement-in-principle] have been working in good faith to confirm the approval of their respective Governments by July 15, a date chosen by consensus so that the work of implementing the enhancements could begin without delay”. He also mentioned that the process remains on track for the Government to table federal legislation in the fall, as planned.
Despite this delay, a spokeswoman for Ontario Finance Minister Charles Sousa said the province is confident CPP enhancements should proceed as designed in the agreement-in-principle and that, as such, the Ontario Retirement Pension Plan (ORPP) will continue to wind down.
Read the announcements:
Federal Minister of Finance statement
Canadian Press article
On June 20th, following the meeting of federal, provincial and territorial Finance Ministers, the Honourable Bill Morneau, Minister of Finance announced that an agreement in principle has been reached between the federal government and provinces, except for Quebec and Manitoba, to strengthen the Canada Pension Plan (CPP).
Read the announcements:
Department of Finance press release
Ontario Minister of Finance press release
Joint federal-Ontario press release
Agreement in principle on CPP enhancements
What this can mean to you?
Ontario Minister of Finance, Charles Sousa said his government is pleased with the deal that was reached. The Government of Ontario has indicated that the Ontario Retirement Pension Plan will not proceed if the deal is finalized. The agreement in principle must be approved by the provinces no later than July 15, 2016.
On June 2, 2016, the Ontario Government passed Bill 186, Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 (the "ORPP Act, 2016"). The ORPP Act, 2016 enshrines in legislation key requirements of ORPP plan design, including participation, contributions, benefit types and plan sustainability.
What this can mean to you
The ORPP Act, 2016 will be supplemented by a set of regulations that are expected to be published this summer.
On April 14, 2016, the Ontario government introduced Bill 186, Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016. The Bill, if passed, would enshrine in legislation key requirements of ORPP plan design, including participation, contributions, benefit types and plan sustainability.
What this can mean to you
Bill 186 will have to pass through the legislative process before it becomes law and will be supplemented by a set of regulations that are expected to be published later this year. It confirms much of the information on plan design and eligibility that had previously been communicated by the government of Ontario earlier this year.
The Ontario government announced that it will phase in the launch of the ORPP by starting enrollment in January 2017, one year later than the original start date and that the first phase of contributions will start in January 2018.
What this can mean to you
This contribution delay means that employers with at least 500 or more Ontario employees without registered pension plans will have to enroll in the ORPP in 2017, but no contributions will be made until January 1, 2018.
All other implementation timelines previously announced remain unchanged. Therefore, contributions will start January 1, 2018 for employers with 50-499 employees and January 1, 2019 for employers with less than 50 employees.
Consult the Ontario government's updated contribution schedule
Ontario is moving forward with its commitment to strengthen retirement income security for Ontarians by announcing further design details of the Ontario Retirement Pension Plan (ORPP), modelled on the strengths and principles of the Canada Pension Plan (CPP).
What this can mean to you
With this announcement, Ontario has provided clarity in a number of areas including plan design, funding and administration of the ORPP.
See the Ontario Retirement Pension Plan website for the latest news from the Ontario Government.