Strengthening Province's Retirement System
New Legislation Would Help Ontarians Save for Retirement
The province is taking an important step to strengthen its retirement income system and ensure Ontarians are better able to enjoy their retirement years, with the introduction of legislation that would, if passed, help people save for retirement.
This afternoon, the province will introduce the Ontario Retirement Pension Plan Act, 2014. The Ontario Retirement Pension Plan Act, 2014 would, if passed, lay out a framework for the creation of the Ontario Retirement Pension Plan (ORPP) and commit the government to establishing the plan by January 1, 2017, helping to address the undersavings problem.
In the coming weeks, the government will release a consultation paper about proposed implementation details of the ORPP, with formal consultations to follow in January 2015.
This afternoon, the province will also introduce the Pooled Registered Pension Plans Act, 2014, legislation that would provide a legal framework for the establishment and administration of pooled registered pension plans in Ontario.
Building a strong retirement income system is part of the government's economic plan for Ontario. The four-part plan is building Ontario up by investing in people's talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives and building a secure pension plan so everyone can afford to retire.
- Fewer than 35 per cent of workers in Ontario currently have a workplace pension plan. Coverage for workers in the private sector is even lower, with only 28 per cent having the benefit of plan membership.
- Studies show that a significant portion of Ontarians will not have sufficient savings to maintain similar living standards throughout their retirement years.
- The Ontario Retirement Pension Plan would be administered by an arm’s length entity with a strong governance structure.
- For pooled registered pension plans, participation would be voluntary for both employers and employees.
“The Ontario Retirement Pension Plan Act represents a major step forward in fulfilling our government’s commitment to creating a strong, secure retirement income system. We are taking leadership today to fulfil this goal and give Ontarians the retirement future they deserve.”
“The retirement savings challenge is complex and requires collaboration from all sectors, as well as a range of tools to ensure a strong and stable retirement income system. That is why encouraging investment in voluntary retirement savings tools such as pooled registered pension plans is an important part of the government’s strategy to enhance retirement savings for all Ontarians.”