Contribution delay announced for Ontario Retirement Pension Plan

February 19, 2016

The Ontario government has announced a contribution delay for the Ontario Retirement Pension Plan (ORPP). The new date for contributions for Wave 1 (over 500 employees) is now Jan. 1, 2018.


The ORPP was due to begin contributions on Jan. 1, 2017, in waves according to the size of the employer. The timeline for implementing contributions for Wave 1 – for employers with more than 500 employees – has now been pushed back to Jan. 1. 2018, with enrolment to occur in 2017.

Organizations (and their employees) with a “comparable plan” don’t have to participate in the ORPP.

Revised timelines for contributions

The following is the revised schedule for introducing the ORPP. Contribution rates will be phased in. Once employers and employees begin contributing at the maximum rate, they will continue to contribute at that rate. Note that Wave 1 and Wave 2 now follow the same timelines:

Wave 1 – Large employers (500 or more employees) without registered workplace pension plans – contributions to start Jan. 1, 2018

Wave 2 – Medium employers (50- 499 employees) without registered workplace pension plans – contributions to start Jan. 1, 2018

Wave 3 – Small employers (49 or fewer employees) without workplace pension plans – contributions to start Jan. 1, 2019

Wave 4 – Employers with a workplace pension plan that is not modified or adjusted to meet the comparability test, as well as employees who are not members of their workplace’s comparable plan – contributions to start Jan. 1, 2020

Contribution rates

ORPP contribution rates remain the same, but timelines have been revised. Contributions by employers and employees will be phased in, reaching 1.9 per cent of annual earnings for employees, with full matching by the employer. The total contribution rate will be 3.8 per cent.

The federal government has agreed to facilitate plan registration and data sharing arrangements, including.

The information provided is based on current tax legislation and interpretations for Canadian residents and may be affected by future legislation and interpretations.

It is accurate to the best of our knowledge as of the date published. This is general information and not intended as legal or tax advice. For specific situations, you should consult a plan advisor.

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