Preparing for the Mandatory ORPP
The New Ontario Retirement Pension Plan Affects Everyone
This month the Ontario Liberal government released more details about the coming ORPP implementation . Be Concerned, but Don't Panic! This affects you whether you are an employer or an employee.
We will cover some highlights, they are still subject to change.
• All businesses will start to be affected in January 2016. The government will start collecting for review, all employee data and any current pension plans in place.
• The new contribution requirements for the ORPP will be approximately 1.9% for employers and 1.9% for employees.
• Companies with +500 employees start contributing Jan 2017, companies with 50-499 employees start Jan 2018, less than 50 employees start Jan 2019.
• Every employee between 18 and 70, earning between $3500 and $90,000 must participate.
• The criteria for self employed is yet to be established.
• Group RRSP's, Deferred Profit Sharing Plans, TFSA's don't qualify for exemption.
• Any current pension plans must be locked in and fit a formula to qualify for exemption.
The Benefit Guys are partnered with the best pension experts in Canada. If you want to review your existing plan to understand the implications of the ORPP to your business, give us a call today to arrange a private consultation. You may need to change some details of your existing plan to qualify for exemption from the ORPP.
Whether we agree with this or not, it's coming. About 80% of businesses with less than 50 employees do not currently have a Pension Plan in place and this will be a new expense. Give us a call and let us co-ordinate your pension plan needs with your existing benefit program. It's time to review the allocation of existing resources.
The Benefit Guys offer affordable, meaningful options. Whether you already have a benefits plan or are considering implementing your first one, give John or Jordan a call for a personal, confidential discussion. We have access to the best plans and the best advice available today.
"No matter how many employees you have - it's perfect. And it starts with one!"
Our Best Practices Annual Review is available for download. You need to reduce your benefits liability exposure. The content in this document will help you.
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