Ontario decides to move ahead with its own pension plan proposal

Consultation paper asks for feedback on design of ORPP
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 01/30/2015

The Ontario government is moving ahead with its proposal to implement a mandatory pension plan in the province in 2017. In December, it tabled the first of its planned bills to set up the Ontario Retirement Pension Plan (ORPP). In January, it began consultations on the plan.

In February, feedback on a recently released consultation paper is due.

The government announced its intention to establish the ORPP in last year’s budget, saying the plan is necessary to help provincial residents save more for their retirement since the federal government has so far refused enhancements to the Canada Pension Plan (CPP). In 2012, 34 per cent of all Ontario workers were covered by a workplace pension plan, down from 40 per cent in 1985. In the private sector, only 28 per cent had a workplace pension plan, according to the Ontario government.