Government Relations

CPP enhancement instead of ORPP means savings for REALTORS®

Thanks in part to lobbying from business groups including OREA, this week, the provincial government pulled the plug on the Ontario Retirement Pension Plan (ORPP) in favor an expanded Canadian Pension Plan (CPP). The change came after a meeting between provincial finance ministers and the federal government earlier this week. For OREA members, this change should save a REALTOR® making $90,000 of income about $1,700 a year.

“The government’s decision to move forward with CPP enhancement instead of the ORPP is good news for Ontario REALTORS®,” said Ray Ferris, President of OREA. “In comparison to the ORPP, CPP enhancement will mean lower payroll costs for real estate salespeople, brokers and brokerages.”

OREA did not support the ORPP since it would have increased payroll costs for real estate salespeople and brokers. OREA participated in several consultations and actively voiced our concerns with the government’s proposal. OREA also worked closely with the Ontario Chamber of Commerce (OCC). Notably, OREA signed two joint submissions with the OCC and over 150 businesses, sector associations, chambers of commerce, and boards of trade advocating against the ORPP. The ORPP was scheduled to take effect in 2017.

With the implementation of the ORPP stopped, REALTORS® will not be required to contribute an additional 3.8% to the ORPP on any income up to $90,000. According to The Globe and Mail, the CPP agreement will go into effect in 2019 and once fully phased in (2025) will require an employer and employee to each contribute an additional 1% (total of 2%).

Thanks in part to OREA’s advocacy, a REALTOR® earning $90,000 will save $1,766 annually because of the difference between the ORPP and the CPP expansion.


Example Scenario: REALTOR® Annual Income = $90,000

ORPP (3.8%) CPP Expansion (2.0%)
$3,420 additional every year $1,654 additional every year

Amount Saved: $1,766


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