February 16, 2016

in Government Updates

Ontario delaying the start of provincial pension plan

According to multiple sources, Ontario will be delaying the start of its signature Ontario Retirement Pension Plan for large companies with 500 or more employees. Although registration and enrolment would still commence for these employers in January 2017 as originally planned, payroll deductions will not start until the following year, January 2018. “A number of groups, including the Association of Canadian Pension Management, the Canadian Life and Health Insurance Association, and the Portfolio Management Association of Canada, have been requesting a one year delay to the implementation of ORPP,” said Accompass Vice President Dianne Tamburro. “This change will give companies more time to prepare, and also gives the federal government more time to explore the possibility of enhancing CPP.”
In addition, the federal government has agreed to assist the province in administering the plan by collecting the pension contributions on the province’s behalf. This is a departure from the previous Conservative federal government’s refusal to participate in the ORPP in any way.