The 2016 Ontario budget confirmed details about the ORPP that were announced in January and reported in The Advisor. This included the delay in required contributions for large employers to 2018, and the new phase-in schedule. According to the budget, final elements of the plan design will be outlined in legislation to be introduced this spring.
“It’s great to see discussions happening around creating strong futures for employees in Ontario,” said Mark Dowdell, Senior Vice President, Investment & Retirement at Accompass. “The delayed rollout can be an opportunity for the province to see what results from the work that’s being done on regulatory reforms to modernize workplace pension plans, and assess the merits of the ORPP and CPP expansion at that point.”
+ The province is also reviewing solvency funding for DB plans
In response to the advent of increasingly costly prescription medications, Ontario’s Patients First: Action Plan for Health Care program will introduce a redesigned public drug program by 2019. The budget mentions that the redesign would coordinate with individuals’ private insurance benefits and focus on equitable access to drugs.
“As it stands now, there is not any seamless way of integrating private plans with the public plans in Ontario for those who do not qualify for seniors drug coverage,” said Accompass Vice President Tiina Liivet. “It’s important that the new program allows for this coordination and is reflective of the specific needs of plan sponsors to ensure the long-term sustainability and cost-effectiveness of private drug plans, and ultimately a healthy and productive workforce.”
+ ODB changes taking effect August 1