Canada: New Ontario retirement plan law is enacted

Canada: New Ontario retirement plan law is enacted

Ontario Bill 186 received Royal Assent on 9 June 2016. The legislation enacts the “Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016” that, in turn, establishes the new Ontario retirement pension plan (ORPP). The collection of contributions will be phased in, based on employer size, starting 1 January 2018. Ontario Finance has stated that regulations related to Bill 186 are anticipated this summer.

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The ORPP will begin to enroll individuals 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. 

*$=Canadian dollar

 

Read a June 2016 report [PDF 48 KB] prepared by the KPMG member firm in Canada: ORPP-Ontario's New Pension Plan Passes into Law

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