PSPP 2013 Contribution Rate Increase
July 12, 2012
The Public Service Pension Board has approved a contribution rate increase effective January 1, 2013.
The new rates for both employees and employers are outlined here:
|Current Contribution Rates||Contribution Rates
Effective January 1, 2013
|Up to YMPE: 9.90%||Up to YMPE: 11.70%|
|Over YMPE: 14.14%||Over YMPE: 16.72%|
|Year's Maximum Pensionable Earnings under the Canada Pension Plan.
(2012 YMPE = $50,100)
The increase stems from the results of a December 31, 2011 actuarial valuation that shows an unfunded liability of close to $2.1 billion, up from $1.4 billion a year prior.
The Board uses actuarial valuations to get an overall assessment of the Plan's financial health and an accurate picture of its assets and liabilities. The purpose of the valuation is to make sure the earned benefits are secure by ensuring the Plan has sufficient assets to cover its obligations to beneficiaries.
For more information about the contribution rate increase, please refer to the frequently asked questions page.