The Ontario Retirement Pension Plan (ORPP) focuses on employees without access to a plan. Pending approval by Ontario's legislature, the ORPP would not apply to individuals who are currently in a comparable workplace pension plan. Starting in 2017, the ORPP would be funded by phased-in equal co-contributions from both employers and employees, and reach 1.9% each from employer and employee when fully phased in by 2021. Every employee in Ontario would be part of the ORPP or a comparable workplace pension plan by 2020. Benefits are to be paid starting in 2022.
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 CAD $90,000.
Read an August 2015 report prepared by the KPMG member firm in Canada: Ontario Retirement Pension Plan Starts in 2017
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