The Liberals put forward legislation to introduce the Ontario Retirement Pension Plan Administration Corporation (ORPP AC), which would comprise an independent, professional board of directors of between nine and 15 members appointed by the Lieutenant Governor in Council.
“The government envisions the ORPP AC as evolving into one of the world’s leading pension organizations,” the budget document said.
The ORPP AC would be responsible for operationalizing the ORPP, administering the plan and investing contributions.
The government also said it would include a transparency and accountability framework based on best practices in pension governance, including annual reporting, an annual meeting and strong financial controls.
In order to introduce the ORPP AC, amendments to several other statutes would have to be introduced.
The ORPP contributions and investment funds would be held in trust for ORPP beneficiaries and would not form part of general government revenues.
The government is considering options for additional elements of the ORPP’s accountability framework. These may include:
- An Office of the Chief Actuary to provide actuarial advice related to the ORPP that could be modelled on the federal Office of the Chief Actuary; and
- An appeals process for reviewing administrative decisions by the ORPP AC.
If the legislation passes, the Province expects to name an interim chair for the ORPP AC in the coming months.
Furthermore, to facilitate the implementation of the ORPP, including design parameters of the pension plan and the establishment of the ORPP administrative entity, the government has established an implementation team of professionals with a wide range of relevant experience and expertise.
In its latest budget, the Ontario provincial government has introduced “a professional, independent pension organization that would be responsible for administering the ORPP.”