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Ontario to Introduce Legislation to Strengthen Retirement Security

Archived News Release

Ontario to Introduce Legislation to Strengthen Retirement Security

Legislation Would Expand Pension Coverage to More than 4 Million Workers by 2020

Ministry of Finance

Today Ontario intends to introduce legislation that will ensure every eligible employee is part of the Ontario Retirement Pension Plan (ORPP) or a comparable workplace pension plan by 2020.

The Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 would expand coverage to more than 4 million Ontario workers--including 75 per cent of younger workers--who do not have access to an adequate workplace pension plan.

The ORPP Act, if passed, would:

  • Provide workers with a predictable stream of income in retirement, paid for life
  • Begin enrolment for employers starting on January 1, 2017, with contributions beginning in waves on January 1, 2018,
  • Ensure employers and employees have the information and the time they need to prepare for implementation
  • Enshrine in legislation the plan design details, including participation, contributions, benefit types, and plan sustainability
  • Hold contributions in trust for plan members that will not form part of government revenues

Building a secure retirement savings plan is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talents and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented business. 

Quick Facts

  • Two-thirds of Ontario’s workers do not participate in a workplace pension plan.
  • Coverage is even lower for young workers – only about one quarter of Ontario workers aged 25 to 34 participated in a workplace pension plan in 2012, compared to nearly half of workers aged 45 to 54.
  • The ORPP would offer a predictable, reliable and inflation-indexed stream of income in retirement, paid for life, by providing a pension of up to 15 per cent of an individual’s earnings, up to $90,000 (in 2017 dollars).
  • A recent cost-benefit analysis conducted by the Conference Board of Canada finds that over the long-term, the ORPP would add billions to the Ontario economy.
  • Ontario is also committed in working collaboratively with the federal government to make progress on a national solution that addresses the needs of future retirees. By moving forward with legislation, Ontario is ensuring that, if no national consensus on CPP enhancement is reached, retirement security can be strengthened in Ontario through the ORPP.

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“With the introduction of the Ontario Retirement Pension Plan Act, 2016, we are moving forward to ensure that every worker in Ontario has the retirement security they deserve. This progressive policy will help ensure that Ontario families are better protected in retirement and it enhances the future prosperity of our province.”

Charles Sousa

Minister of Finance

“The ORPP will expand pension coverage to over four million Ontario workers, and support current and future generations of Ontarians in retirement. Today’s legislation hardwires all the critical elements of the ORPP into one comprehensive piece of legislation, giving employers and employees across the province clarity and the time they need to prepare for implementation.”

Mitzie Hunter

Associate Minister of Finance (Ontario Retirement Pension Plan)

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