Ontario Takes the Next Step Towards Strengthened Retirement Income Security


Ontario has announced new decisions on the proposed design of the Ontario Retirement Pension Plan (ORPP) — another step in delivering on its commitment to strengthen retirement income security for the two-thirds of Ontario workers without a secure workplace pension plan. Premier Kathleen Wynne joined Minister of Finance Charles Sousa and Associate Minister of Finance Mitzie Hunter today to share information on a range of decisions, including the structure of ORPP benefits, compliance and enforcement, plan comparability and member participation. The government also released details on the ORPP’s funding policy. The details released today, combined with details released last August, will help employers prepare for the implementation of the ORPP, beginning on January 1, 2017. Ontario has made significant progress on the ORPP in recent months. This includes the Ontario Retirement Pension Plan Administration Corporation appointing a CEO and Board of Directors, passing two pieces of enabling legislation and releasing key design and implementation details. Studies show that many Ontarians are not able to save enough to maintain a similar standard of living when they retire. For many workers, long-term, full-time employment with pension benefits is no longer attainable. Today’s announcement brings the government closer to achieving its goal of ensuring that every eligible Ontario employee is part of the ORPP or a comparable workplace pension plan by 2020. ORPP plan design details have now been shared with the Canada Revenue Agency. Building a secure retirement savings plan is part of the government’s plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan also includes investing in people’s talents and skills, making the largest investment in public infrastructure in the province’s history and creating a dynamic, supportive environment where business thrives.


  • Pension coverage is lower for young workers than for any other age group. Only about one quarter of Ontario workers aged 25 to 34 participated in a workplace pension plan in 2012, compared to nearly half of workers aged 45 to 54.
  • The ORPP would expand pension coverage to more than 4 million workers. It would provide a predictable, reliable and inflation-indexed stream of income in retirement by replacing up to 15 per cent of an individual’s earnings, up to $90,000 (in 2017 dollars).
  • Enrolment would be phased in to ensure that the ORPP is focused on workers without access to a workplace pension plan, and to give employers time to adapt.
  • Under the proposed phase-in, plan members would start making contributions in 2017 and the ORPP would start providing benefits in 2022.





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