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Feb. 16—Contributions to the Ontario Retirement Pension Plan (ORPP) will be postponed to January 2018 from January 2017, Canadian Minister of Finance Bill Morneau, Ontario Minister of Finance Charles Sousa and Ontario Associate Minister of Finance Mitzie Hunter said Feb. 16 in a joint statement.
Prior to the announcement, employees and employers of organizations with at least 500 or more employees without registered pension plans were scheduled to begin contributing to ORPP Jan. 1, 2017. Under the new time frame, the employers will enroll in the pension plan but no contributions will be made until Jan. 1, 2018.
All other implementation time frames previously stipulated, including the date of Jan, 1, 2018, for organizations with 50-499 employees to begin contributions and the date of Jan. 1, 2019, for organizations with less than 50 employees to begin contributions are to remain unchanged, the statement said.The delay will “provide more time for discussion among provinces and the federal government,” on options for “enhancing” the federal Canadian Pension Plan, the statement said.
While the Feb. 16 joint statement called for the need to “develop options for CPP enhancements by the end of May ,” a more detailed time frame for implementation of such enhancements is unavailable, a federal Ministry of Finance spokesperson told Bloomberg BNA Feb. 16.
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The news release on the postponement is available at http://news.gc.ca/web/article-en.do?nid=1034409.
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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