Retirement Plan Details

by Weekend Newsguy | Aug 11, 2015
Premier Kathleen Wynne announced key details in the design of the Ontario Retirement Pension Plan earlier today. The ORPP would help close the retirement savings gap for the two out of three Ontarians who do not have a secure workplace pension plan. Under the plan, businesses with more than 500 employees will have to begin contributing when the ORPP begins in 2017. Medium-sized firms — will contribute starting in 2018, while small businesses won’t have to pay the increase until 2019. The promised provincial pension plan will require workers to contribute 1.9 per cent of their annual earnings, to a maximum of $90,000 per year, and employers will have to match that. Workers and companies with comparable workplace pension plans will be exempt.