Aug. 11—Employers and employees in Ontario will begin contributing to the Ontario Retirement Pension Plan or a comparable pension plan by 2017 with full enrollment to be reached by 2020, the Ontario Ministry of Finance proposed Aug. 11.
First tabled in the Ontario parliament by the province's finance minister on April 23, 2015, the ministry has now detailed its proposed guidelines for contribution rates, gradual deadlines for enrollment, a definition of comparable pension plans and payments for the plan.
Under the newly proposed guidelines, employers and employees will have equal contributions rates, which will be incrementally phased in until all employees and employers contribute at a rate of 1.9 percent of the employee's salary.
Beginning in early 2016, all Ontario employers will be contacted by the Ontario Retirement Pension Plan Administration Corporation, an independent organization responsible for administering the Ontario Retirement Pension Plan, to verify their existing pension plans and assess the coverage offered to employees, the ministry said.
The following chart details the exact enrollment and contribution deadlines depending on employer size and pension status:
|Type of Employer||Jan. 1, 2017||Jan. 1, 2018||Jan. 1, 2019||Jan. 1, 2020||Jan. 1, 2021|
|Employers with 500 or more employees without registered pension plans||0.8%||1.6%||1.9%||1.9%||1.9%|
|Employers with 50-499 employees without registered pension plans||0%||0.8%||1.6%||1.9%||1.9%|
|Employers with 50 or fewer employees without registered pension plans||0%||0%||0.8%||1.6%||1.9%|
|Employers with pension plans that are not comparable to ORPP and employees who are not members of an employer comparable plan||0%||0%||0%||1.9%||1.9%|
The proposed details on ORPP by the Ministry of Finance can only be approved after they are tabled when Ontario's parliament is back in session, currently scheduled to be on Sept. 14, 2015.
To contact the reporter on this story: Jared Mondschein at email@example.com
To contact the editor responsible for this story: Michael Trimarchi at firstname.lastname@example.org
The ORPP informational website is available at https://www.ontario.ca/page/orpp-ontario-retirement-pension-plan.
More information on payroll issues in Canada can be found in the Canada country primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)