Williams HR Law LLP


June 22, 2016

[vc_row][vc_column width=”1/3″][vc_single_image image=”187″ img_size=”full”][/vc_column][vc_column width=”2/3″][vc_column_text]On Monday, the Ontario government confirmed that the Ontario Retirement Pension Plan (ORPP) will not be launched in 2018 as planned since the majority of the provinces

and the federal government have agreed on a national Canada Pension Plan (CPP) enhancement plan. Ontario, along with other provinces, has been pushing for an enhanced CPP since 2013 because of concerns that middle-class Canadians are not saving enough for retirement. Because the Conservative federal government was opposed to the CPP enhancement, Ontario began the process of setting up the ORPP. The enhanced CPP will have broader application than the ORPP; it will apply to all Ontarians and its benefits will be portable between provinces.

The new CPP plan will be finalized before the upcoming Council of the Federation meeting, which begins July 15, and will become effective in 2019. Under the new plan, workers will begin contributing, on average, $7 more per month to the CPP in 2019. The amount will increase to an average of an additional $34 per month by 2023.  Once the enhancement plan is fully implemented, the maximum annual benefits under the CPP will increase by approximately one-third to $17,478.

A blog post outlining what this change means for employers will follow soon.


This blog is provided as information and a summary of workplace legal issues.

This information is not intended as legal advice.