Ontario’s provincial government announced on Thursday that it intends to introduce legislation to launch the Ontario Retirement Pension Plan (ORPP).
The legislation would establish the details of the plan design, including the rules on participation, contributions and benefits. Ontario’s provincial government is planning to begin enrolment for employers on Jan. 1, 2017, with contributions beginning on Jan. 1, 2018.
“Today’s legislation hardwires all the critical elements of the ORPP into one comprehensive piece of legislation, giving employers and employees across the province clarity and the time they need to prepare for implementation,” said Mitzie Hunter, associate minister of finance, in a statement.
Nevertheless, Ontario notes that it remains committed to working with the federal government to bolster the Canada Pension Plan (CPP), which is the provincial government’s preferred solution to enhancing retirement savings. However, the introduction of ORPP legislation will ensure that “if no national consensus on CPP enhancement is reached, retirement security can be strengthened in Ontario through the ORPP,” Ontario’s government points out.
“With the introduction of the Ontario Retirement Pension Plan Act, 2016, we are moving forward to ensure that every worker in Ontario has the retirement security they deserve,” added provincial finance minister, Charles Sousa, in a statement. “This progressive policy will help ensure that Ontario families are better protected in retirement and it enhances the future prosperity of our province.”
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