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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 firstname.lastname@example.org
To contact the editor responsible for this story: Michael Trimarchi at email@example.com
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.
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