Companies in Ontario may have to backpedal on plans to modify their pension arrangements if the new Ontario Registered Pension Plan, scheduled for 2017, is supplanted by a proposal from the federal Liberals to enhance the Canada Pension Plan.
Premier Kathleen Wynne introduced the ORPP in late 2014, largely as a response to the former prime minister's refusal to raise pension contributions for businesses. But with Prime Minister Justin Trudeau promising to call meetings with the provincial finance ministers within three months, the ORPP could find itself redundant and outdated – as well as any company plan designed around it.
Stephanie Kalinowski, a pension lawyer and partner at Hicks Morley Hamilton Stewart Storie LLP, says the province has stated clearly that it's moving ahead with ORPP, and clients have already begun considerations on plan amendments designed to blunt the impact of increased contributions.
Lexpert senior editor David Dias reports on expanded pension benefits at www.lexpert.ca/globe.