Both members and employers make contributions to the pension plan. Member contributions are based on a percentage of pensionable salary up to the salary cap and are made via payroll deduction; the employer contributions match the member contribution amount. Salary cap is determined each year based on federal income tax legislation that limits the amount of benefit that can be paid from a registered pension plan, such as the PSPP.
Contribution rates are adjusted periodically to help ensure sufficient assets are available to pay all benefits promised under the Public Service Pension Plan both today and in the future. An actuarial valuation must be done at least every three years to determine the Plan's contribution rates. The Public Service Pension Board reviews the actuary's recommendations and changes contribution rates as necessary.
|2013 Contribution Rates|
|Up to YMPE: 11.70%|
|Over YMPE: 16.72%|
|YMPE is the Year's Maximum Pensionable Earnings under the Canada Pension Plan
(2013 YMPE = $51,100)