The deadline of January 1, 2020 for the Ontario Retirement Pension Plan (ORPP) to be fully phased in and operational has been confirmed. The Ontario Minister of Finance recently announced the government’s plan to delay the first wave of implementation by one year to January 1, 2018.
OMERS members will not be affected by the ORPP.
OMERS will be considered a “comparable plan” under the ORPP, and, as a result, members of the OMERS Plan will not be affected by the ORPP. However, any employees who are not in OMERS by January 1, 2020 will be affected.
OMERS and its employers will need to address the issue of non-full-time employees who are not currently members of the OMERS Plan. Although OMERS employers can make the OMERS Plan mandatory for their non-full-time employees, not all employers have elected to do so. The OMERS Sponsors Corporation (SC) is reviewing options related to non-full-time employees who are not currently enrolled in the OMERS Plan.
The Ontario government’s goal continues to be that every employee in the province be enrolled in the ORPP, or a comparable workplace pension plan if they earn more than $3,500 per year, regardless of the nature of their employment (i.e. contract, seasonal, etc.).
Additional information on ORPP for employers is available at this Province of Ontario site.
This link connects to the technical briefing with all the ORPP details that have been decided to date.
Legislation setting out comprehensive ORPP details is expected to be presented this Spring.
Pension Reform - Canada Pension Plan
Expansion of the CPP is a priority of the federal government. The federal Finance Minister is engaged in discussion with provincial leaders on potential CPP enhancements. Any change requires support of 2/3 of the provinces representing at least 2/3 of the population. It could take time to reach an agreement.
There are different ways the CPP could be expanded and, given the number of approaches that could be considered, it is too early to provide clarity on what this might mean for OMERS, our members and employers. We will provide updates as information becomes available.