The Government of Ontario has unveiled details about its plan to create an arms-length organization to administer the Ontario Retirement Pension Plan (ORPP).

The provincial budget says the ORPP Administration Corporation (ORPP AC) will be responsible for administering the plan and investing contributions.

It will have an independent board of directors with between nine and 15 members.

Read: What you need to know about the ORPP

The budget notes that ORPP contributions and investment funds will be held in trust for ORPP beneficiaries and will not form part of general government revenues.

“In my opinion, they’re on the right track for the governance structure for it, which is encouraging,” says Paul Forestell, Mercer’s national retirement leader.

To support the ORPP’s governance framework, the government will put in place an interim board to oversee the implementation process.

If the legislation passes, the province expects to name an interim chair for the ORPP AC in the coming months.

Read: ORPP consultation paper released

The budget didn’t disclose details on the ORPP plan design and the government says it’s still considering feedback from its recent consultations.

“It’s too big of an issue for them to have figured it out by now because the consultation didn’t close until recently so it’s not surprising,” says Ian Edelist, a principal with Eckler and its pension practice leader.

The government plans to announce its conclusions on the three key ORPP design questions mentioned in its consultation paper “shortly.”

He notes there are a lot of decisions to be made between now and the proposed ORPP start date of Jan. 1, 2017 and says it’s hard to imagine the ORPP will be ready on time.

What the budget missed
The consultants believe there are items the government still needs to address that were missing in the budget.

Forestell says the government could do more to address the funding regime for private plans.

“It didn’t disappoint me because I had no expectation of that being in there but I still feel they need to do more to support private sector plans,” he explains.
Edelist believes the government’s preoccupation with the ORPP is preventing the industry from introducing other plan designs.

“There’s no new information about target-benefit plans,” he says. “It’s a real shame that they’re falling behind on moving ahead.”

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Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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Joe Nunes:

Where do I apply to be on the Board or to be CEO of the ORPP AC?

If we are going to do this then we better appoint people that understand how to do it as close to perfect as possible!

Friday, April 24 at 7:56 am | Reply

Phil:

O.R.P.P……..Ontario Removing Pay from your Pockets……….this is just another excuse to create a revenue stream to take money out of the pockets of hard working people to fund some Utopian fantasy fun land for the liberals and to further cripple the independence of citizens in Ontario. Everyone knows that if you have wealth, you have freedom of movement and a voice in what goes on but turn everyone into money making machines and they are too busy just trying to stay live and pay the bills to see what the government is doing. Instead of robbing and thieving more and more and more money from us, did you ever think of tightening up in places where you are wasting money? stop with the stupid decisions that cost billions of tax dollars every time you decide something……..have a look at how the little person has to live and then you will see the extremes you create and be ashamed……..from poor crime enforcement funding to the elderly, who have slaved their whole lives and cannot ever afford something as easy as good dentures to eat with and maintain their dignity…..that may sound odd to you but then government members have guaranteed pensions and benefits don’t they……try implementing that same template for the average person and stop treating them a source of revenue to waste away.

Friday, July 10 at 10:40 am | Reply

naval k gupta:

It is very sad that no body literally realize where the whole world is going with more disparity with income levels and with more and more moderanization and less people actually working or have a job. No body really worries realistically for the new geneations to come to see how they will manage their lives, I wonder as most of the kids, teenagers and young adults are already wasting their lives on those video games or you tube videos and do not even know or decide what they want to do in life and just staying with paretns and waiting for them to transfer their hard earned savings after their deaths.

In that perspective, we need to worry more for national level socio economic plans keeping our political party egos on the side for better future and healthy life styles for our future genartions and conserve natural resources not just keep wasting them just to fill some ultra rich share holders who do not give a damn what happens to these new future generations. Thanks.

Thursday, October 15 at 5:19 am | Reply

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