The Ontario Retirement Pension Plan is the new mandatory pension plan program proposed by the government of Ontario with an effective date of January 1, 2017.

The goal of the ORPP is to strengthen Ontario's retirement income system by creating a pension plan with a lifetime benefit and locked-in funds. It is built on the principle of fairness with mandatory matching employer contributions, emulating the Canada Pension Plan (CPP). The implementation of the plan also takes into account the needs of employers.

The ORPP is designed to help workers without a workplace pension plan and those who are at risk of not being able to save enough. It will complement existing workplace plans and other voluntary retirement savings arrangements for Ontarians to maintain their standard of living in retirement.

The ORPP will:
  • Be mandatory for Ontario employers, except for employers with a ‘comparable’ workplace pension plan in place;
  • Require 1.9% contribution from both employer and employees (proposed phase in of contributions) – earnings above $90,000 are exempt;
  • Target income replacement rate of 15%;
  • Lock-in contributions.
  • Both employers and employees will make equal contributions. Contribution rates will be phased-in from the time a business enrolls. Once employers and employees begin contributing at the maximum rate, they will continue to contribute at that rate. Contributions apply for earnings up to $90,000 annually.

The Ontario government recently announced that it would phase-in the launch of the Ontario Retirement Pension Plan (ORPP) by starting enrollment in January 2017, one year later than the original start date, and that the first phase of contributions would start in January 2018.

To keep you updated on these developments, we've prepared the following documents:


ORPP Update - March 11, 2016
ORPP Comparison - ORPP vs Comparable Plan

We'll keep you informed as further details become available. In the meantime, should you have any questions about the ORPP, please don't hesitate to contact Josée Leclair at 705-647-6645.