How will the government’s review of FSCO’s mandate impact the implementation of the province’s new pension plan.
When the government announced they were reviewing FSCO’s mandate around insurance and pensions among other things, the natural conclusion was to think it was preparing the groundwork for implementing the ORPP.
However the governemtn is at pains to dismiss that thinking.
“We must stress that they are two totally different items,” said Scott Blodgett, spokesperson for the Ministry of Finance. The FSCO Act has not been significantly amended or reviewed since its enactment in 1997, and the scope of FSCO’s mandate has changed over the years. The ORPP is a pension solution to help Ontario workers retire with greater financial security and will essentially mirror the Canada Pension Plan.”
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, which will 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. ORPP contribution rates would be phased-in over two years.
But the industry has severely criticized the plan, with the main complaint revolving around the exclusion of employers already offering DC plans.
However the governemtn is at pains to dismiss that thinking.
“We must stress that they are two totally different items,” said Scott Blodgett, spokesperson for the Ministry of Finance. The FSCO Act has not been significantly amended or reviewed since its enactment in 1997, and the scope of FSCO’s mandate has changed over the years. The ORPP is a pension solution to help Ontario workers retire with greater financial security and will essentially mirror the Canada Pension Plan.”
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, which will 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. ORPP contribution rates would be phased-in over two years.
But the industry has severely criticized the plan, with the main complaint revolving around the exclusion of employers already offering DC plans.
