Ontario Retirement Pension Plan Impacts on Ontario Manufacturers |
Dear colleague,
The Ontario Government is planning to introduce the Ontario Retirement Pension Plan (ORPP) in 2017 to supplement existing federal retirement benefits. For manufacturers without a qualifying pension already in place, the proposed ORPP will cost employers an estimated $1,400 per employee per year.
Employers that have a “comparable” pension already in place would not be required to enroll in the ORPP. To be considered comparable, employer plans must:
- provide a predictable income stream for life;
- include employer contributions; and
- aim to replace at least 15 per cent of annual pre-retirement income.
Defined benefit plans must reach the 15 per cent threshold to qualify. Defined Contribution plans must include a minimum eight per cent contribution, of which at least four per cent must come from the employer. Group plans (GRRSPs) and Deferred Profit-Sharing Plans (DPSPs) are not eligible.
Canadian Manufacturers & Exporters and the Coalition support retirement income security for Ontarians, but we are concerned about the impact that mandatory employer contributions will have on manufacturing competitiveness, jobs and the economy.
We need your input to better understand these impacts and to support our advocacy efforts. Please take the time to fill in the survey. It will take two minutes to complete and your responses will be held strictly confidential. Make your voice heard. Survey closes on Wednesday, September 2, 2015.
Participants will receive a copy of the survey results and details of our action plan in the next few weeks.
To learn how you can become involved please contact us at lacy.gillott@cme-mec.ca.
Thank you in advance for your input and support.
Sincerely,
Jayson Myers
President & CEO, Canadian Manufacturers & Exporters
Chair, Canadian Manufacturing Coalition
The Ontario Government is planning to introduce the Ontario Retirement Pension Plan (ORPP) in 2017 to supplement existing federal retirement benefits. For manufacturers without a qualifying pension already in place, the proposed ORPP will cost employers an estimated $1,400 per employee per year.
Employers that have a “comparable” pension already in place would not be required to enroll in the ORPP. To be considered comparable, employer plans must:
- provide a predictable income stream for life;
- include employer contributions; and
- aim to replace at least 15 per cent of annual pre-retirement income.
Defined benefit plans must reach the 15 per cent threshold to qualify. Defined Contribution plans must include a minimum eight per cent contribution, of which at least four per cent must come from the employer. Group plans (GRRSPs) and Deferred Profit-Sharing Plans (DPSPs) are not eligible.
Canadian Manufacturers & Exporters and the Coalition support retirement income security for Ontarians, but we are concerned about the impact that mandatory employer contributions will have on manufacturing competitiveness, jobs and the economy.
We need your input to better understand these impacts and to support our advocacy efforts. Please take the time to fill in the survey. It will take two minutes to complete and your responses will be held strictly confidential. Make your voice heard. Survey closes on Wednesday, September 2, 2015.
Participants will receive a copy of the survey results and details of our action plan in the next few weeks.
To learn how you can become involved please contact us at lacy.gillott@cme-mec.ca.
Thank you in advance for your input and support.
Sincerely,
Jayson Myers
President & CEO, Canadian Manufacturers & Exporters
Chair, Canadian Manufacturing Coalition