Ontario passes retirement pension plan act

Toronto – Ontario has passed the Ontario Retirement Pension Plan Act with the goal of providing Ontario workers with a predictable stream of income in retirement, paid for life, the province said in a news release.

The ORPP will also offer a survivor benefit for all plan members, the release said.

Along with regulations expected this summer, the legislation gives employers and employees information to prepare for the launch of the ORPP. The province has said its goal is to make every eligible employee part of the ORPP or a comparable workplace pension plan by 2020. 

Strengthening the retirement income system is critical to the future prosperity of the province. Studies suggest many workers are not saving enough to maintain their standard of living in retirement, the release said. Pension coverage is also low for many Ontarians, with only one in four younger workers – aged 25 to 34 – participating in a workplace pension plan.