Canadian Tax Adviser, June 14, 2016 Ontario Bill 186 received Royal Assent on June 9, 2016. This bill enacts the Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016, which establishes the new Ontario Retirement Pension Plan (ORPP). The collection of contributions will be phased in, based on employer size, starting January 1, 2018. Ontario Finance states that regulations related to Bill 186 are anticipated this summer.
The ORPP will begin enrolment starting in January 2017. It will be funded by phased-in equal co-contributions from both employers and employees, reaching 1.9% when fully phased in, up to a maximum annual earnings threshold of $90,000.
The ORPP does not apply to individuals who are currently in a comparable workplace pension plan.
For more information, contact your KPMG adviser.
Information is current to June 14, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500