The Ontario government is now soliciting feedback on the Ontario Retirement Pension Plan (ORPP) design and implementation process through a series of targeted questions for employers and employees. The ORPP is intended to provide a predictable source of retirement income for those most at risk of under-saving, particularly middle-income earners without workplace pensions. It will be introduced in 2017 to coincide with the expected reductions in Employment Insurance premiums, helping to minimize the impact on employees and employers. To help with the adjustment, enrolment of employers and employees in the ORPP would occur in stages, beginning with the largest employers. Contribution rates would be phased-in over two years and employees and employers will contribute an equal amount, capped at 1.9 per cent each (3.8 per cent combined) on an employee’s annual earnings up to $90,000. Earnings above $90,000 (in 2014 dollars) will be exempt from ORPP contributions. The amount of money received in retirement will depend on how many years an employee contributed to the pension plan and their salary throughout those years. For information, visit ORPP Consultation.

Reproduced with permission from Benefits and Pensions Monitor