One year delay announced for implementation of the Ontario Retirement Pension Plan (ORPP).
On February 16, 2016, Ontario Finance Minister Charles Sousa announced the province will delay the implementation of the Ontario Retirement Pension Plan (ORPP) by one year. Large corporations will be required to register with the ORPP by next January 1, 2017, but will not be required to remit premiums until January 1, 2018. The delay will give employers more time to prepare for the ORPP.
Minister Sousa also announced the province has reached an agreement with the federal government on administrative support for the ORPP. The federal government has agreed to facilitate retirement plan registration and will work with the province on collecting employer and employee contributions.
The ORPP, which was passed into legislation in 2015, has come under tremendous criticism from business leaders. Although many are against any form of pension plan reform, others believe a nationwide CPP expansion is what Ontarians and Canadians need. The delay will give the federal government and the other provinces more time to “engage in a national dialogue about the enhancement to the Canada Pension Plan” according to Mr. Sousa.
For a summary of the ORPP, read the Fusion Blog from September 2015 – ORPP Implementation and the guide to the ORPP for Employers.
Want to read more about the announcement – Ontario Retirement Pension Plan Delayed – read the latest ORPP news release.
