Our Ontario Retirement Pension Plan will provide 3 million people with retirement security they deserve after working all their lives

1. The middle-class isn’t saving enough for retirement.
  • Not saving enough means a significant portion of the population is facing a diminished quality of life in retirement.
  • Only 35% of Ontarians have a workplace pension plan.
  • Voluntary measures are not enough. There is $260 billion in unused RRSP contribution room in 2012 in Ontario.
  • CPP benefits are not sufficient – the maximum benefit is $12,500 – the Ontario average is $6,800 – and it only requires contributions and pays benefits up to an income threshold of about $52,500.
  • A new research paper by David Dodge, former Governor of the Bank of Canada, stresses that Canadian households need to save more now to support future economic growth and maintain a satisfactory standard of living in retirement.
2. Enhancing the CPP is our preferred option.
  • The federal government unilaterally shut down discussion on CPP enhancements.
  • Their own economic analysis shows that a CPP enhancement would benefit the economy in the long run.
  • Retirement security is too important to do nothing.
3. The Ontario Retirement Pension Plan (ORPP).
  • We will move forward with a Made-in-Ontario solution to the emerging retirement income crisis.
  • We appointed Michael Nobrega, former CEO of OMERS, as a Special Advisor on the design of the plan, and created a Technical Advisory Group.
  • A start date of 2017 coincides with expected reductions in Employment Insurance premiums, lowering the impact on business.
  • The plan will be professionally administered at arm’s length from government.
  • Enrolment of employers would occur in stages, beginning with the largest employers. Contributions will be phased in over 2 years.
4. Contributions will not exceed 1.9% each.
  • The ORPP will require equal contributions by employers and employees, not exceeding 1.9% on earnings up to $90,000.
  • Maximum earnings threshold would increase each year consistent with the CPP.
5. The ORPP will be as similar to the CPP as possible.
  • When combined with CPP benefits, the ORPP would provide income replacement of approximately 30-40% for middle income earners. A worker earning $45,000 would have a replacement rate of about 40% and a worker earning $90,000 would have a replacement rate of about 30%, receiving a benefit that is about double the current maximum CPP benefit.