The Ontario government it appears is seeking feedback on its new Retirement plan yet it only gives two days to give the feedback according to the following article. I am not sure if this means they are not serious about getting feedback or if they think that business will have received information about when to give feedback in earlier writings.
On December 8, 2014, the Ontario Government introduced Bill 56, Ontario Retirement Pension Plan Act. Bill 56 sets out the parameters for the Ontario Retirement Pension Plan (ORPP). If Bill 56 receives Royal Assent in the future, which is expected, almost all employers that have employees in Ontario will be impacted.
- Contributions to the ORPP will be made by eligible employers and eligible employees. A person who participates in a "comparable" workplace pension plan is not an "eligible employee" (i.e. contributions do not have to be made to the ORPP with respect to such persons), but the legislation has not yet defined what constitutes a comparable workplace pension plan.
- Contributions will be determined by applying the "applicable contribution rate" (which will be the same for eligible employers and eligible employees but will not exceed 3.8 percent combined) to the portion of the eligible employee's annual salary and wages between the minimum and maximum thresholds. The maximum threshold for 2017 will be $90,000 adjusted in accordance with legislation.
- Normally, retirement benefits under the ORPP will be paid for the life of a plan member beginning at age 65, but such benefits may begin to be paid as early as 60 years of age or as late as 70 years of age as long as they are actuarially adjusted. Retirement benefits under the ORPP will be indexed to inflation.
- What constitutes a "comparable" workplace pension plan? The Ontario Government has indicated that its preferred approach is to define comparable workplace pension plan as a defined benefit or target benefit multiemployer pension plans. This would mean that defined contribution pension plans, pooled registered pension plans, and group registered retirement savings plans would not be a "comparable" workplace pension plan. The Ontario Government has asked the following question, among others: in your view, what would be the best definition of "comparable" workplace pension plans?
- What is the right minimum earnings threshold? The 2014 Ontario Budget indicated that earnings below a certain threshold would be exempt from contributions, to reduce the burden on lower-income workers. One question the Ontario Government has asked is how different employers will be affected if the minimum earnings threshold is different than that of the Canada Pension Plan.
- How to best assist self-employed individuals? One question the Ontario Government has asked is whether Ontario should engage in discussions with the Government of Canada to amend the Income Tax Act rules to allow the selfemployed to participate in the ORPP.