Ontario Government Announces New ORPP Design Details
Date: January 26, 2016
On January 26, 2016, the Ontario government announced new Ontario Retirement Pension Plan (“ORPP”) design details. Among other things, the announcement provides further clarity and guidance on the following issues of particular interest to employers:
- coverage, and in particular the definition of “employment in Ontario,” as well as application of the ORPP to non-residents and First Nations;
- scope of earnings that will be pensionable;
- issues concerning the comparable pension plan exemption, including comparability rules for multi-employer pension plans, waiting periods, voluntary contributions and opt-ins; and
- matters concerning the ORPP’s funded status, including the potential for further contribution rate increases.
We are in the process of reviewing these design details, and an analysis and discussion of their impact on ORPP implementation will be published on our website in the coming days.
For background information on the ORPP, please contact any member of our Pension, Benefits and Executive Compensation practice group, or consult our other recent publications:
2015 Federal Election Update: ORPP or CPP – Which Will it be? (October 26, 2015)
ORPP: Ontario Government Announces Implementation Details (August 11, 2015)