Inviting public feedback on key aspects of the new Ontario Retirement Pension Plan.
Ontario recently released a consultation paper inviting public feedback on key aspects of the new Ontario Retirement Pension Plan (ORPP). The government is seeking input on the 36-page paper, "Ontario Retirement Pension Plan: Key Design Questions", until February 13, 2015. In particular, Ontario is seeking feedback on:
Ontario said that feedback on questions related to the delivery, administration and the phased implementation of the ORPP will be considered as the province moves toward implementing the plan in 2017.
The 2014 Ontario budget proposed a new provincial pension plan based on the key features of the CPP. Ontario Bill 56, which contains measures to implement the ORPP, received first reading on December 8, 2014. The bill includes certain basic requirements of the ORPP to be implemented by January 1, 2017.
The plan requires that the ORPP collect equal contributions from eligible employers and eligible employees (not exceeding 1.9% each, or 3.8% in total), up to a maximum annual earnings threshold of $90,000 as adjusted for the percentage increase in the yearly maximum pensionable earnings under the Canada Pension Plan between 2014 and 2017.
The bill includes an exception to participation in the ORPP where the individual participates in a comparable workplace pension plan.
The bill also establishes the duties of an administrative entity including collection and investment of contributions, administration of benefits and requirements for communications and reporting.
For more information, contact your KPMG adviser.