In the 2016 Federal Budget that was proposed yesterday in Ottawa, an update was provided on the topic of Canada's national pension plan. In December, the federal government began discussions with provinces about CPP expansion to help Canadians avoid the risk of outliving their savings. Finance Minister Bill Morneau shared his hope to reach a collective decision with the provinces by the end of 2016.
“The timing seems to line up with Ontario’s recent decision to delay contributions to the Ontario Retirement Pension Plan,” Accompass Senior Vice President Mark Dowdell said. “But businesses with Ontario employees should still plan for the ORPP, as two-thirds of the provinces representing two-thirds of the population need to be on board in order for Ottawa to be able to make any changes to CPP.”
The Advisor will continue to provide updates as they happen, including announcements about CPP expansion and any developments related to the ORPP.