The Ontario Legislature has approved the Ontario Retirement Pension Plan (ORPP). The ORPP is expected to provide millions of Ontarions with a secure, predictable, and lifelong stream of retirement income.
Liberty Staffing Services would like to provide our assignment employees and clients with some information regarding the Ontario Retirement Pension Plan.
What is the ORPP?
The Ontario Retirement Pension Plan is a retirement benefit. The retirement benefit was approved in 2015 and is expected to provide people living in Ontario with a secure, predictable, and lifelong stream of income when they retire. The ORPP combines the Canada Pension Plan, old age security, and your personal savings.
When will the Ontario Retirement Pension Plan be effective?
January 1, 2017
Am I eligible for the ORPP?
Employees and employers within Ontario are eligible to contribute an equal amount capped at 1.9% each on an employee’s annual salary of up to $90,000.
Employees who receive a salary above $90,000 annually (in 2014 dollars) will be exempt from the Ontario Retirement Pension Plan.
How much money will I receive?
The amount of money that you receive for your retirement is based on how many years you decide to contribute to the Ontario Retirement Pension Plan, and your salary throughout those years.
Why should I contribute to the Ontario Retirement Pension Plan?
Recent studies show that most people in the workforce do not enroll in a workplace pension plan. As a result, many people do not save enough money to attain a financially secure retirement. Liberty Staffing Services suggests that you become knowledgeable of the Ontario Retirement Pension Plan, as well as the Canada Pension Plan, to make an informed decision and plan for your retirement.
Why now?
The Ontario Retirement Pension Plan will help to address the current retirement savings challenge in Ontario.
Liberty Staffing Services wishes all of our assignment employees and clients a safe and happy retirement. For more information regarding the Ontario Retirement Pension Plan, please visit the Government of Ontario website.
