Bill 186, Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 received Royal Assent on June 9, 2016. The purpose of the Ontario Retirement Pension Plan was to be a provincially-managed pension plan aimed at providing retirement income to employees without pension plan options at work.
On June 20, 2016, Ontario Finance Minister Charles Sousa announced that the Ontario Retirement Pension Plan (ORPP) would be cancelled in light of an agreement in principle formed with the federal government to expand the Canada Pension Plan (CPP). The agreement in principle to enhance the CPP must be approved by all signatories no later than July 15, 2016.
This agreement, which has yet to be finalized, would be gradually phased in effective January 1, 2019, and would increase contributions made to the CPP.
Bird Richard will update readers once additional information in relation to the CPP expansion has been released.