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ORPP: Ontario Retirement Pension Plan
A pension plan designed to help Ontario workers retire with greater financial security.

For employees For employers

Why now?
Studies show that people aren’t able to save enough for retirement. For many workers, long-term, full-time employment with pension benefits is no longer attainable.

Unless action is taken now, saving enough for retirement will become even more difficult over time.
The problem: CPP isn’t enough

How much is enough to retire?
Experts recommend saving enough to replace 50-70% of your income to securely retire and live comfortably.
See what the ORPP means for somebody earning: $45,000

You contribute $2.16 per day
Your employer contributes $2.16 per day
You get $6,410 per year for life

Without ORPP: OAS $6,677
CPP $10,680
More personal savings

With ORPP: OAS $6,677
CPP $10,680
ORPP $6,410
Less personal savings
The example illustrates someone who contributes to the CPP and ORPP for 40 years, retires at age 65 and aims to replace 60% of their income.

The examples are based on maximum Old Age Security (OAS), Canada Pension Plan (CPP) benefits in 2014, and estimated ORPP benefits. While further work is required to finalize the ORPP details, these examples help show how the ORPP would work and how it would address undersaving.

How it works
Like the CPP, the ORPP is a retirement savings plan intended to provide Ontarians with a predictable source of retirement income for life.

The amount of money you receive from the ORPP after you retire will depend on: how many years you contribute to the pension plan and your salary throughout those years.

The ORPP will be introduced in 2017 and, by 2020, subject to legislative approval, every employee in Ontario will be part of either the ORPP or a comparable workplace pension plan.

Employees and employers will contribute an equal amount, capped at 1.9% each (3.8% combined) on an employee’s annual earnings up to $90,000.

The Ontario Retirement Pension Plan (ORPP) is not a tax. The funds collected in the ORPP and their investment returns will be used exclusively for the benefit of members. They will not form a part of the government’s general revenues.

For Employers:

Enrolment schedule

To support businesses as they plan and adjust, enrolment in the ORPP will be phased in over time.

No employer or employee will make contributions to the ORPP until 2017.

The process of verifying comparable workplace pension plans and enrolling businesses will begin in 2016. Details on enrolment, contribution rates and phase-in for employers and employees are subject to legislative approval.

Type of employer                                                                             2017      2018     2019     2020     2021

Wave 1: large employers without registered workplace plans         0.8%       1.6%     1.9%      1.9%     1.9%
Wave 2: medium employers without registered workplace plans       0%        0.8%     1.6%      1.9%     1.9%
Wave 3: Small employers without registered workplace plans           0%          0%     0.8%      1.6%     1.9%
Wave 4: employers with registered plans that do not meet test         0%          0%        0%      1.9%     1.9%
Wave 1: Large employers (500 or more employees) without registered workplace pension plans. Contributions to start: January 1, 2017.

Wave 2: Medium employers (50- 499 employees) without registered workplace pension plans. Contributions to start: January 1, 2018.

Wave 3: Small employers (49 or fewer employees) without workplace pension plans. Contributions to start: January 1, 2019.

Wave 4: Employers with a workplace pension plan that is not modified or adjusted to meet the comparability test, as well as employees who are not members of their workplace’s comparable plan. Contributions to start: January 1, 2020.