The ORPP is mandatory for employers without a comparable workplace pension plan.
Employers will contribute up to 1.9% on an employee’s annual earnings up to $90,000. Both employers and employees will make equal contributions.
The ORPP minimum earnings threshold (the amount a plan member earns before they begin making contributions) will be $3,500 for eligible employees between the ages of 18 and 70. Pensionable earnings include both cash and non-cash earnings, including bonuses, commissions and tips.
Employers that already offer a comparable workplace pension plan will not be required to participate in the ORPP for employees covered by their comparable plan.
Employers that offer a registered workplace plan, as of August 11, 2015, that doesn’t meet the minimum threshold will have until 2020 to decide if they want to adjust their plans or enrol their employees in the ORPP. For example, an employer that offers a Defined Contribution plan that does not meet the minimum threshold may decide to increase the contribution rate to meet the comparability threshold.