Skip to Content

Ontario one step closer to rolling out Ontario Retirement Pension Plan by January 1, 2017

Jurisdiction: - Ontario

The Ontario Ministry of Finance issued the following news release on April 29, 2015 concerning the Ontario Retirement Pension Plan, which is currently scheduled to be rolled out by January 1, 2017:

Bill Strengthening Retirement Security for Millions of Workers Passess in Ontario Legislature

The Ontario Retirement Pension Plan Act, 2015 has been approved by the Ontario Legislature. The Act forms the foundation of the ORPP, which the government will put in place by January 1, 2017.

Ontario has held extensive consultations across the province with business, labour, associations, young workers, pension experts, individuals and families to ensure that the government creates the best plan for the people of Ontario.

Once established, the ORPP will be the first of its kind in Canada, building on key features of the Canada Pension Plan (CPP). The ORPP will:

  • Offer a predictable stream of income in retirement for life, and index benefits to inflation, similar to the CPP's retirement benefit.
  • Require equal contributions to be shared between employers and employees, helping to bolster retirement savings.
  • Aim to replace 15 per cent of an individual's earnings.
  • Require benefits to be earned as contributions are made, ensuring the system is fair and younger generations are not burdened with additional costs associated with older workers' benefits.
  • Offer  portability, giving younger workers who are expected to change employers multiple times in their working lives, a single place to accumulate savings over the course of their careers.

Building a strong and secure retirement income system is part of the government's economic plan for Ontario. The four-part plan is building Ontario up by investing in people's talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives and building a secure pension plan so everyone can afford to retire.

Quick Facts

  • Two thirds of Ontario workers do not have a workplace pension plan.
  • Pension coverage for younger workers is even lower - in 2012, only about one-quarter of workers aged 25 to 34 participated in workplace pension plans, compared to nearly half of workers aged 45 to 54.
  • A number of studies show that many people are not saving enough to maintain a similar living standard in retirement.
  • The ORPP will expand pension coverage to millions of working Ontarians.

Additional Resources