DC Plans and the ORPP: Why Fees Matter

Abstract

A flaw in the design of the Ontario Retirement Pension Plan (ORPP) could unfairly penalize employers as well as the people the plan intends to help, according to a new C.D. Howe Institute report. In “DC Plans and the ORPP: Why Fees Matter,” authors James Pierlot and Barry Gros show how employers who pay pension plan expenses, such as investment management and regulatory compliance costs, could be unfairly excluded from having their plans deemed ORPP-comparable and therefore excused from making ORPP contributions.