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ORPP Details Revealed


Ontario has announced further design details of the Ontario Retirement Pension Plan (ORPP), modelled on the strengths and principles of the Canada Pension Plan (CPP). By 2020, every eligible worker in Ontario will be part of either the ORPP or a comparable workplace pension plan and it would begin paying benefits in 2022. Employers would be required to pay contributions on behalf of workers employed in Ontario and also collect and remit contributions from those workers. A person would be considered employed in Ontario if they report to work, full- or part-time, at an employer's establishment in Ontario. This also applies to a worker whose salary or hourly wages are paid from an Ontario-based employer, but who is not required to work at an employer's place of business because they work from a home office, for example. Benefits paid over the course of a plan member's retirement would be indexed according to the Consumer Price Index (CPI) to account for inflation. Survivor benefits will be payable to the surviving spouse of an ORPP member or their beneficiary or estate. This will entitle the member's spouse to receive a survivor benefit equal to 60 per cent of the member's adjusted pension after the plan member dies. In order to ensure plan sustainability, the government has designed ORPP benefits to be sustainable over the next 100 years. A funding policy has been established that requires appropriate adjustments to be made in the event that the plan becomes underfunded.

Courtesy of Benefits and Pensions Monitor website News Alerts 

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