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Ontario unveils details on Ontario Retirement Pension Plan
May 1, 2014
The Government of Ontario is moving forward with a new mandatory provincial pension plan, the Ontario Retirement Pension Plan (ORPP).
Unveiled in the provincial budget on Thursday, the ORPP would be the first of its kind in Canada and would expand pension coverage initially to more than three million working Ontarians who currently rely on the Canada Pension Plan (CPP), old age security (OAS) and their own savings for retirement income.
It would build on the key features of the CPP, and could later be integrated with the CPP should negotiations on an enhancement be successful in the future.
The ORPP would include the following design features:
A predictable stream of income in retirement by pooling longevity and investment risk, and indexing benefits to inflation, similar to CPP’s retirement benefit.
Equal contributions shared between employers and employees, not exceeding 1.9% each (3.8% combined) on earnings up to a maximum annual earnings threshold of $90,000. The ORPP maximum earnings threshold would increase each year consistent with increases to the CPP’s maximum earnings threshold.
Aim to provide a replacement rate of 15% of an individual’s earnings, up to a maximum annual earnings threshold of $90,000.
Publicly administered at arm’s length from government, have a strong governance model and be responsible for managing investments associated with annual contributions of approximately $3.5 billion.
Benefits would be earned as contributions are made to ensure that the system is fair, and younger generations are not burdened with additional costs.
Since the ORPP is intended to assist individuals most at risk of undersaving, particularly middle-income earners without workplace pensions, those already participating in a comparable workplace pension plan would not be required to enroll in the ORPP.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Ontario unveils details on Ontario Retirement Pension Plan
May 1, 2014
The Government of Ontario is moving forward with a new mandatory provincial pension plan, the Ontario Retirement Pension Plan (ORPP).
Unveiled in the provincial budget on Thursday, the ORPP would be the first of its kind in Canada and would expand pension coverage initially to more than three million working Ontarians who currently rely on the Canada Pension Plan (CPP), old age security (OAS) and their own savings for retirement income.
It would build on the key features of the CPP, and could later be integrated with the CPP should negotiations on an enhancement be successful in the future.
The ORPP would include the following design features:
A predictable stream of income in retirement by pooling longevity and investment risk, and indexing benefits to inflation, similar to CPP’s retirement benefit.
Equal contributions shared between employers and employees, not exceeding 1.9% each (3.8% combined) on earnings up to a maximum annual earnings threshold of $90,000. The ORPP maximum earnings threshold would increase each year consistent with increases to the CPP’s maximum earnings threshold.
Aim to provide a replacement rate of 15% of an individual’s earnings, up to a maximum annual earnings threshold of $90,000.
Publicly administered at arm’s length from government, have a strong governance model and be responsible for managing investments associated with annual contributions of approximately $3.5 billion.
Benefits would be earned as contributions are made to ensure that the system is fair, and younger generations are not burdened with additional costs.
Since the ORPP is intended to assist individuals most at risk of undersaving, particularly middle-income earners without workplace pensions, those already participating in a comparable workplace pension plan would not be required to enroll in the ORPP.更多精彩文章及讨论，请光临枫下论坛 rolia.net