Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016, S.O. 2016, c. 17

JurisdictionOntario

Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016

S.O. 2016, CHAPTER 17

Historical version for the period June 9, 2016 to December 7, 2016.

Note: THIS ACT IS NOT YET IN FORCE. It comes into force on a day to be named by proclamation of the Lieutenant Governor.

No amendments.

CONTENTS

Preamble

After a lifetime of hard work, Ontarians deserve to feel financially secure in their retirement. Strengthening the retirement income system is not only important to Ontario families, it is critical to the future prosperity of the province.

Canada and Ontario have a strong foundation of retirement benefit programs, namely the Canada Pension Plan, Old Age Security, the Guaranteed Income Supplement and the Ontario Guaranteed Annual Income System. However, studies have shown that many of today’s workers are not saving enough to maintain their standard of living when they retire. The reasons for this are varied: workplace pension coverage is low and getting lower for younger generations; individuals are not taking sufficient advantage of voluntary savings tools; and people are living longer than ever before.

The Government of Ontario is taking a leadership role in addressing this pressing issue by establishing a new mandatory Ontario Retirement Pension Plan (“ORPP”) that will enable workers to build a more secure future. It is the first pension plan of its kind in Canada, and it is built on many key features of the Canada Pension Plan. Its purpose is to provide a lifetime pension.

The Government of Ontario is committed to ensuring that the ORPP is administered by an entity, the Ontario Retirement Pension Plan Administration Corporation, with a strong governance structure and investment strategy to ensure that the ORPP is efficiently managed, accountable, transparent and fair. The sustainability of the ORPP is of paramount importance and, accordingly, certain measures will be required if the ORPP has a funding shortfall or funding excess.

The Government of Ontario is moving forward with the ORPP as a priority. Contributions will begin on January 1, 2018, through a phased approach. The Administration Corporation will manage contributions in the best interests of the beneficiaries of the ORPP.

Therefore, Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

General

Interpretation

Definitions

1. (1) In this Act,

“actuarially equivalent” means actuarially equivalent as determined in accordance with the regulations; (“équivalent du point de vue actuariel”)

“Administration Corporation” means the Ontario Retirement Pension Plan Administration Corporation established under the Ontario Retirement Pension Plan Administration Corporation Act, 2015; (“Société d’administration”)

“employee” means,

(a) a person who is employed within the meaning of the definition of “employment” in subsection 2 (1) of the Canada Pension Plan, other than a person who is an officer within the meaning of that Act, or

(b) the holder of an office who is an employee under subsection (4); (“employé”)

“employer” means, subject to any regulations authorized under subsection (2) clarifying who is the employer for an employee, a person who,

(a) pays remuneration to an employee,

(b) is an employer under any regulations authorized under subsection (3), or

(c) is the employer of a holder of an office under subsection (4); (“employeur”)

“federal government” means the Government of Canada and any department, agency, board, commission, official or other body of the Government of Canada; (“gouvernement fédéral”)

“joint and survivor pension” means a pension payable during the joint lives of the member entitled to the pension and his or her spouse and thereafter during the life of the survivor of them; (“pension réversible”)

“member” means a person who has contributed to the ORPP as an employee, but does not include a person who is no longer entitled to any amount under the ORPP as a result of having been paid a lump sum under this Act; (“participant”)

“Minister” means the Minister of Finance or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; (“ministre”)

“ORPP” means the Ontario Retirement Pension Plan; (“RRPO”)

“pensionable earnings” means the pensionable earnings of an employee as determined in accordance with the regulations; (“gains ouvrant droit à pension”)

“pension fund” has the same meaning as in section 1 of the Ontario Retirement Pension Plan Administration Corporation Act, 2015; (“caisse de retraite”)

“prescribed” means prescribed under the regulations made under section 88; (“prescrit”)

“regulations” means the regulations made under section 88; (“règlements”)

“spouse” means, either of two persons who,

(a) are married to each other, or

(b) are not married to each other and are living together in a conjugal relationship,

(i) continuously for a period of not less than three years, or

(ii) in a relationship of some permanence, if they are the natural or adoptive parents of a child; (“conjoint”)

“workplace pension plan” means,

(a) a pension plan registered under the Pension Benefits Act or under substantially similar legislation of another jurisdiction in Canada,

(b) a pension plan regulated under the laws of a jurisdiction outside Canada, if the pension plan meets the prescribed requirements,

(c) a pooled registered pension plan within the meaning of the Pooled Registered Pension Plans Act, 2015, or

(d) a prescribed pension plan. (“régime de retraite d’employeur”)

Regulations to clarify who is the employer

(2) The regulations may clarify who the employer is for an employee.

Remuneration paid by more than one person

(3) The regulations may, if an employee’s remuneration is paid by more than one person, provide for such persons to be employers of the employee and govern and clarify the obligations of those persons under this Act.

Holder of an office

(4) For the purposes of this Act, the holder of an office, within the meaning of subsection (5), is an employee and the person who pays the holder the stipend or remuneration referred to in subsection (5) is the holder’s employer.

Same

(5) For the purposes of subsection (4), the holder of an office is a person whose position entitles him or her to a fixed or ascertainable stipend or remuneration and includes the following, if the person is entitled to a fixed or ascertainable stipend or remuneration:

1. A director of a corporation.

2. The holder of a judicial office.

3. The holder of a position that is elected by popular vote or elected or appointed in a representative capacity including, without limiting the generality of the foregoing, a member of the Legislative Assembly or a member of a municipal council or school board.

Crown bound

2. This Act binds the Crown.

Establishment of the ORPP

Establishment of ORPP

3. The ORPP is hereby established.

Contributions

Employers required to contribute

4. An employer is required to contribute to the ORPP in respect of each of the employer’s employees who is required to contribute to the ORPP.

Employees required to contribute

5. (1) Subject to sections 6 to 14, an employee is required to contribute to the ORPP in respect of employment for which the employee does not participate in a workplace pension plan that is comparable to the ORPP.

Employer opting-in despite comparable workplace pension plan

(2) Subject to sections 6 to 14, an employee is, despite subsection (1), required to contribute to the ORPP if the employer has elected, in accordance with the regulations, to contribute to the ORPP in respect of all of the employer’s employees who participate in a workplace pension plan described in subsection (1) and the employer has not withdrawn that election in accordance with the regulations.

Comparable workplace pension plan

(3) The following apply to determine, for the purposes of this section, whether a workplace pension plan is comparable to the ORPP:

1. A defined benefit pension plan is comparable to the ORPP if the annual benefit accrual rate for the plan is at least 0.5 per cent of a member’s annual remuneration as an employee, for a pension at the normal retirement date under the pension plan.

2. For the purposes of paragraph 1, if the defined benefit pension plan is of a type that is prescribed for the purposes of this paragraph, the annual benefit accrual rate for the pension plan shall be determined in accordance with the regulations.

3. A defined contribution pension plan is comparable to the ORPP if the total mandatory contribution rate for the plan is at least 8 per cent of a member’s annual remuneration as an employee and the mandatory contribution rate for the plan for the employer is at least 4 per cent of the member’s annual remuneration as an employee.

4. For the purposes of paragraph 3, if the defined contribution pension plan is of a type that is prescribed for the purposes of this paragraph, the total mandatory contribution rate for the plan and the mandatory contribution rate for the plan for the employer shall be determined in accordance with the regulations.

5. For greater certainty, none of the following shall be taken into account for the purposes of paragraphs 3 and 4:

i. Voluntary contributions.

ii. Contributions an employer is required to make in relation to an employee’s voluntary contributions.

6. Despite paragraphs 1 and 2, a multi-employer pension plan, within the meaning of the Pension Benefits Act, that is a defined benefit pension plan is comparable to the ORPP if,

i. the pension plan meets the requirements to be comparable to the ORPP under paragraph 1, or

ii. the pension plan meets the requirements to be comparable to the ORPP under paragraph 3 that would be applicable if the pension plan were a defined contribution plan.

7. If a...

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