Ontario Retirement Pension Plan (ORPP) for Ontarians

September 09, 2015

The Ontario government has been developing its Ontario Retirement Pension Plan (ORPP) for Ontarians who do not have a comparable workplace pension plan. On August 11th, Premier Kathleen Wynne announced key details about the design of the ORPP, which will be phased in over the next three years.

The province clarified two key design elements which will impact OMERS and our members, employers and stakeholders. First, members of comparable pension plans such as OMERS will not be required to join the ORPP. Second, part-time and other non-full-time employees, who are not currently enrolled in OMERS, will need to either enrol in OMERS or the ORPP, as the government’s overarching philosophy is "coverage for all workers." The timeline for this second item is to be completed for no later than December 31, 2019.

Key Components of the ORPP

  • Employees and employers will contribute 1.9% each (3.8% combined) of an employee’s annual earnings up to $90,000.
  • Earnings above $90,000 (in 2014 dollars) will be exempt from ORPP contributions.
  • The retirement benefit depends upon how many years members contribute to the ORPP and their earnings throughout those years.
  • Other details, such as minimum income thresholds, are still to be determined.

How Does this Impact You?

The government made it clear that all employees must be in the ORPP or a comparable workplace plan by January 1, 2020.

  • Members: No impact on existing OMERS members and their employers.
  • Part-time and non-full-time employees: Employees who are not currently enrolled in OMERS will need to either be enrolled in OMERS or the ORPP by December 31, 2019.

Next Steps

OMERS continues to participate in discussions with government on the ORPP and is monitoring the development of a potential CPP expansion, to assess the implications and determine next steps.

We are committed to keeping you informed throughout this process.

For more information on the ORPP, visit: http://www.ontario.ca/page/ontario-retirement-pension-plan#section-2.