“The feud over the proposed Ontario pension plan escalated Tuesday after Premier Kathleen Wynne revealed new details about the retirement supplement and Stephen Harper labelled it a payroll tax that will kill jobs and hurt middle-class families.
The Ontario Retirement Pension Plan, which starts in 2017 with benefits paid out to workers beginning in 2022, has been a political flashpoint between the Liberal Premier and the Conservative Leader even before he called the election more than a week ago.
The province says its initiative will help 3.5 million Ontarians when they retire, but will be rolled out over several years. Contributions from employers and employees will also be phased in,” wrote Jane Taber for The Globe and Mail on Tuesday August 11, 2015.
Taber continued, “Beginning in January, 2017, employers with 500 or more workers, who do not have registered pension plans, will contribute to the plan. The contributions will be phased in. For example, in 2017, large employers and their employees will each contribute 0.8 per cent, and by 2019, they will contribute 1.9 per cent.
In 2018, medium-sized employers – 50 to 499 employees – will start their contributions. In 2019, small employers, with fewer than 50 employees, will join. By 2020, the government hopes every Ontario employee will be enrolled in either the ORPP or a comparable workplace pension.
An employee earning $45,000 a year would collect $6,410 a year at the end of 40 years; an employee earning $90,000 a year would collect $12,815 after 40 years.”
Read the full article here.
Raymond Matt, CFP, CLU, TEP, CHS
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