What's this about?
In its 2014 Budget, the Government of Ontario formally announced its intent to establish the Ontario Retirement Pension Plan (ORPP), a new province-wide and government-run pension plan. The ORPP, which aims to supplement the Canada Pension Plan (CPP), will require employers to match employee pension contributions. Employees and employers will contribute 1.9% each (3.8% combined) on an employee’s annual earnings up to $90,000.
The ORPP is the government’s response to a growing retirement savings challenge that is currently facing some Ontarians.
Our goal is to that Ontarians are adequately prepared for retirement is a serious concern of the OCC and our membership. This is why 72% of our members believe that pension reform should be a priority for government.
Our members still do not have a clear understanding of how the ORPP will impact Ontario’s business climate and the broader economy. Before moving further with the implementation of this new pension plan, the government must conduct a comprehensive and publicly available economic analysis of the new pension plan.
In addition, many employers currently contribute to Ontarians’ retirement savings through a variety of plans. The new pension plan should not penalize those employers who are already contributing significantly to their employees’ retirement savings. The government should expand its definition pension plan comparability to accommodate these plans.