Pension eligibility at age 65 - Contribution rates
If you became a member of the public service pension plan on or after , you are eligible to receive an unreduced pension at age 65 with at least two years of pensionable service (or at age 60 with at least 30 years of service). For information about the types of benefits available, refer to Pension Options.
You contribute a percentage of your salary through payroll deductions to the public service pension plan. The following table illustrates the contribution rates for 2024.
On your salary | In 2022, you contributed | In 2023, you contributed | In 2024, you will contribute |
---|---|---|---|
Up to the year’s maximum pensionable earnings ($68,500 in 2024) | 7.95% | 7.93% | 7.94% |
Above the year’s maximum pensionable earnings | 11.82% | 11.72% | 11.54% |
If your salary exceeds a certain amount ($202,000 in 2024), you contribute to the public service pension plan on your salary up to that limit and to the Retirement Compensation Arrangement on your salary above that limit.
If you receive other types of payment (e.g. allowances) in addition to your base salary, ask the Government of Canada Pension Centre whether or not you contribute on these other amounts.
When you have completed the maximum 35 years of pensionable service, your contribution rate drops to 1 percent of your salary for the remainder of your service.
Examples of how your pension contributions are calculated
Earnings above the year’s maximum pensionable earnings (YMPE)
If your earnings are above the YMPE, $90,000 for the following example, your contributions for the year would be calculated as follows:
Step 1: Multiply the contribution rate up to the YMPE by the YMPE.
7.94% x $68,500 = $5,438.90
Step 2: Subtract the YMPE from your salary.
$90,000 - $68,500 = $21,500
Step 3: Multiply the contribution rate above the YMPE by the results of Step 2.
11.54% x $21,500 = $2,481.10
Step 4: Add the results of Steps 1. and 3. together to find your total public service pension plan contributions for the year.
$5,438.90 + $2,481.10 = $7,920
Based on a salary of $90,000, your 2024 public service pension plan contributions are $7,920.
Earnings below the year’s maximum pensionable earnings (YMPE)
If your earnings are below the YMPE, $45,000 for the following example, your contributions for the year would be calculated as follows:
Multiply the contribution rate up to the YMPE by your salary:
7.94% x $45,000 = $3,573
Based on your salary of $45,000, your 2024 public service pension plan contributions are $3,573.
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