The Ontario Legislature enacted the Ontario Retirement Pension Plan Wednesday, despite hue and cry from advisors.
The Ontario Retirement Pension Plan Act 2015, which forms the foundation of the ORPP, has been approved by the Ontario Legislature, putting the government on track to keep to its Jan 1, 2017 rollout date.
“After a lifetime of working and contributing to the economy, Ontarians deserve a secure retirement,” said Mitzie Hunter, Associate Minister of Finance (Ontario Retirement Pension Plan). “We are working to strengthen the retirement income system in Ontario and will give the people of this province a predictable, lifelong stream of retirement income, while supporting the prosperity of the province as a whole.”
The province held extensive consultations across the province with business, including the industry, labour, associations, young workers, pension experts, individuals and families to ensure that the government creates the best plan for the people of Ontario.
Once established, the ORPP the government claims it will be the first of its kind in Canada, building on key features of the Canada Pension Plan (CPP). The ORPP will:
The Ontario Retirement Pension Plan Act 2015, which forms the foundation of the ORPP, has been approved by the Ontario Legislature, putting the government on track to keep to its Jan 1, 2017 rollout date.
“After a lifetime of working and contributing to the economy, Ontarians deserve a secure retirement,” said Mitzie Hunter, Associate Minister of Finance (Ontario Retirement Pension Plan). “We are working to strengthen the retirement income system in Ontario and will give the people of this province a predictable, lifelong stream of retirement income, while supporting the prosperity of the province as a whole.”
The province held extensive consultations across the province with business, including the industry, labour, associations, young workers, pension experts, individuals and families to ensure that the government creates the best plan for the people of Ontario.
Once established, the ORPP the government claims it will be the first of its kind in Canada, building on key features of the Canada Pension Plan (CPP). The ORPP will:
- Offer a predictable stream of income in retirement for life, and index benefits to inflation, similar to the CPP's retirement benefit.
- Require equal contributions to be shared between employers and employees, helping to bolster retirement savings.
- Aim to replace 15 per cent of an individual's earnings.
- Require benefits to be earned as contributions are made, ensuring the system is fair and younger generations are not burdened with additional costs associated with older workers' benefits.
- Offer portability, giving younger workers who are expected to change employers multiple times in their working lives, a single place to accumulate savings over the course of their careers.
