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What is the Ontario Retirement Pension Plan?

| January 19, 2015 | 5 Comments

13856188134_03767afb47_qIf you haven’t heard yet the Ontario government will be implementing a mandatory Ontario Retirement Pension Plan (ORPP) for all employers starting January 2017.

Many of the details have yet to be worked out, with many of the rules still uncertain i.e. a recent consultation paper that said defined contribution plans would not be recognized by the new Ontario pension plan which would mean employers would still have to join the ORPP. I have created a short video that covers what we know as of now what the ORPP is and how it works and how it benefits you as an employee.

What are you thoughts about the government forcing you to save 1.9% for retirement?

 

Photo credit: aag_photos / Foter / CC BY-SA

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Category: Business, Finance, Living

About the Author ()

Andrew is a licensed Life Insurance Broker and Registered Retirement Consultant-RRC® helping Ottawa families since 2011. He is a father of two boys, owner of LifeInsurance-Orleans.ca, LifeInsurance-Ottawa.ca and was a host of Ottawa Experts on Rogers Cable 22. Author's website.

Comments (5)

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  1. Gord Brown says:

    While I think it’s a good idea in principle, I don’t having about $75-$100 less per month in my budget, that I don’t have a choice over. It would be nice to know (given those would be my contributions), what kind of return I can expect from the government in 30 years when I retire, will it really be better than investing in my own retirement, or is this just another provincial cash grab?

  2. You make a good point Gord, the reasoning behind this Ontario Pension Plan is to force Ontarians to save for their retirement. If you make $70,000 per year your portion of the contribution will be about $103.80 a month. For a lot of Ontarians that are living on the edge, they should be planning now on what changes they will have to make to their budget when 2017 comes around. The investments will not be under the government control, they will be with private financial institutions and that decision is your employers. For more information on the ORPP visit OntarioRegisteredPensionPlan.ca .

  3. Stephanie LaPlante says:

    This is something I definitely need to learn a lot more about!

  4. Edit:The ORPP will be starting in 2017 not 2015.

    Andrew

  5. Victoria Ess says:

    Thanks for posting about this. I actually did not hear about this initiative, and need to look more into it.

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