Ontario government to delay ORPP rollout by one year

Contributions won’t start until Jan 1. 2018



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The Association of Canadian Pension Management is welcoming today’s announcement of a one-year delay to the Ontario Retirement Pension Plan.

“We welcome it,” says ACPM chief executive officer Bryan Hocking, calling it a “wise” move.

“I think they’ve had enough input from a number of different organizations and companies that are all saying the same thing at this point,” he notes, referring to a growing number of calls in recent weeks to delay the ORPP by one year.

In a speech at the Empire Club today, Finance Minister Charles Sousa announced the province would be delaying the ORPP by one year. As a result, large corporations will still have to register with the ORPP as of Jan. 1, 2017, but won’t have to start remitting premiums until Jan. 1, 2018. Under the original schedule, premiums were to apply to large companies as of 2017 with the ORPP continuing to roll out in stages until Jan. 1, 2020.

What you need to know about the ORPP »

“So we’re giving employers more time to prepare,” said Sousa.

Sousa also announced the province had reached an agreement with the federal government on administrative support for the ORPP. The province says the federal government has agreed to facilitate plan registration and data-sharing arrangements and will work with Ontario on issues such as collecting employer and employee contributions.

Sousa said the delay would allow for a “national dialogue” on CPP reform, something Premier Kathleen Wynne has long said she’d prefer to see happen. While the new federal Liberal government is on side with that idea, the provinces failed to agree on this issue at a meeting late last year.

According to a report today in the Toronto Star, however, the Ontario government is still doubtful about the prospects for CPP reform and is instead looking to see whether other provinces want to follow its lead on a more aggressive pension plan. As a result, it’s not necessarily looking to abandon the ORPP.

How Wynne’s ORPP will change savings habits »

Hocking, meanwhile, says his association is neither for nor against the ORPP. The major concern, he notes, is that moving forward with the ORPP as originally envisioned would thwart a compromise among the provinces on CPP reform despite the changed federal stance on the issue. “Why not give time to discuss it if that’s the case?” he asks.

And with the province having just reached an agreement with the federal government on the administrative issues, he says implementing the ORPP as scheduled in 2017 would have been a challenge. “I’d be surprised if somebody in Ottawa didn’t say, ‘Well, that’s pretty short notice,’” he says.

This article was originally published on Benefits Canada

One comment on “Ontario government to delay ORPP rollout by one year

  1. This is a horrible new tax. I am self employed and it will rob me of another 3.8% of income. This is on top of the 9.8% CPP. This is another 13.6% on top of regular income taxes. Therefore the lowest tax rate is about 1/3 of income!
    People are poor because the government takes our money only to waste it. This extra tax will reduce people’s ability to save for a home, so it will steal the dream away from the hardworking people on the margin. It will steal the ability to save to start your own business, buy the small luxuries that people like. It is a self fulfilling prophecy that people are poor and need help. We’re poor because of our power hungry government taxes and wastes too much.

    Wynn is proud of “clean electricity” but doesn’t mention “at any price”. Wind and solar technology has not caught up and doesn’t make financial sense, but the Liberals are entering into long term contracts that lock in high prices with inefficient technology. They waste billions of dollars on things that we can see like the cancelled gas plants and who knows what else.

    Wynn says she is going to “invest”/ steal the provincial pension money on “infrastructure”. Inefficient technology that doesn’t make sense, roads & bridges, gas plants to be cancelled, are lousy investments. This is just a huge new tax to increase government waste.

    She says she is going to operate it like the CPP. The CPP is only 20% funded. The CPP will pay out not from investments, but mostly by taking from the CPP premiums from today’s children left working. The provincial pension will be more of the same.

    We pay huge road taxes. More than what is spent on the roads.
    There is a separate health insurance premium on our taxes. They allow the unions to extort wages above market rates.
    We have many, many laws but no justice.

    Therefore Ontario is a bad place to do business because taxes are too high, governments support and encourage excessive operating costs, in terms of electricity, transportation, labour rates and employer taxes and declining justice. Government now thinks they can create wealth with more taxes!

    Please stand up and ask that the Liberals look at all sides before doing anything. People are poor because of the government. Government does not create wealth.
    Additional taxes do not create wealth. Governments’ job is to create wealth by creating a healthy environment to do business. Ontario’s financial environment is very sick and misguided.
    Stand up against the taxes.


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