Call Us Now

Blog

Preparing your Business for the Ontario Retirement Pension Plan

Posted On: September, 17 2015

The Ontario Government has begun the roll-out of the Ontario Retirement Pension Plan (“Retirement Pension Plan”) which is intended to provide a predictable source of retirement income for Ontarians. The costs associated with the Retirement Pension Plan may come as a sudden shock to employers and employees absent informed financial and legal planning. The Retirement Pension Plan is meant to address the reality in the modern workplace of reduced long-term employment and a corresponding reduction of enrollment in workplace pension plans. The Retirement Pension Plan will represent a significant additional payroll cost to employers and reduce employees’ take home pay. The government hopes to offset some of the costs of the Retirement Pension Plan to employers and employees through a simultaneous reduction in Employment Insurance premiums.

Under the Plan, employees and employers will contribute an equal amount, capped at 1.9% each on an employee’s annual earnings up to $90,000.  For an employee earning $90,000 annually, the Retirement Pension Plan will cost the employer and the employee $1,710 each on an annual basis. This additional cost will have to be factored in to employers’ balance sheets and employees’ household budgets. Employees already participating in a comparable workplace pension plan would not be enrolled in the Retirement Pension Plan.

Employers will be obligated to contribute to the Retirement Pension Plan in four waves.

Wave 1

  • “Large” employers (500 or more employees) without registered workplace pension plans. Contributions to start: January 1, 2017.

Wave 2

  • “Medium” employers (50- 499 employees) without registered workplace pension plans. Contributions to start: January 1, 2018.

Wave 3

  • “Small” employers (50 or fewer employees) without workplace pension plans. Contributions to start: January 1, 2019.

Wave 4

  • Employers with a workplace pension plan in place that does not meet the Ontario Government’s minimum standards.

Contributions to start: January 1, 2020.

Employers who do not currently provide pension plans to their employees are well-advised to start planning for a long-term increase in payroll costs. If you have any questions or require advice regarding the Ontario Retirement Pension Plan or any other workplace law related matter do not hesitate to contact Pinto Wray James LLP, we are ready to help. 

 

No feedback yet

Leave a comment


Your email address will not be revealed on this site.
BadExcellent
(For my next comment on this site)
(Allow users to contact me through a message form -- Your email will not be revealed!)

Contact Us

RECENT NEWS & EVENTS

5 STAR REVIEWS

  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by SB

    I just wanted to let you know how happy I am with the outcome and how very grateful I am for the guidance and support that you and your team provided.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Google user

    Patrick James is really a great lawyer who is smart and great to deal with. He's been our litigation counsel for over 5 years on several different matters. Patrick recently gave our company great strategic advice that resulted in a big commercial litigation win for our company. He's fierce, tenacious, and really cares about getting the best outcome for his clients.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Google user

    Patrick is a very good lawyer. He recently successfully defended a lawsuit against my company and has pursued several litigation claims for us in the past. All claims settled input favour. Mr. James is smart and quickly gives you great strategic advice. Patrick has been a real asset to our business.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Sandra L.

    Andrew Wray and Patrick James recently helped settle a difficult situation for me and my family. The results were exactly what we were hoping for. They are honest, strategic and will provide you with the best advice for you and your financial situation. I highly recommend them to everyone I know.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Mark C.

    Their team is highly focused and incredibly professional - from our experience it would be difficult not to believe that Pinto Wray James are one of Ontario's leading Firms in Labor and Employment law. The mindful client care and complete understanding of the case eased fears and the stress that comes with any legal dispute. Expect to find high level smartly crafted legal solutions at Pinto Wray James LLP - couldn't recommend more.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Sherry C.

    Patrick is knowledgeable, strategic, supportive, and patient. His guidance and advice helped me to maintain focus and to keep things in perspective. His experience and keen perception provides him with an edge that allows him to assess the situation, the people involved, and to offer a strategic resolution that works best for all involved. If you ever require legal advice and assistance, I highly recommend him and his team. They will be there 100% for you.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Christian V.

    Patrick is a fearless advocate for diverse clients. His strategic approach, and his empathy, are what set him apart as a litigator, and champion of the underdog.
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by A Google User

    I have no hesitation recommending Andrew Wray of Pinto Wray James LLP. He provided me with legal advice regarding an employment law issue and his council was practical and honest. Andrew's approach is very much one of blending legal excellence with good common sense. An excellent lawyer!
  • Rating: 5 Lawyer Toronto - 5 Star Reviews
    Pinto Wray James Reviewed by Larry S.

    Patrick listens to his clients and shows compassion, empathy and professionalism. He cares deeply that the individual that has been wrongfully terminated gets the best judgment available to him. I would not hesitate in recommending him to friends or family.
Submit