Information concerning the three major public sector pension plans
Since 2006, employee contribution rates have gradually been increased to better align member contributions with the cost of plan benefits and to reflect the Government of Canada’s movement towards the balanced cost-sharing ratios that were announced in 2005. To ensure that the objective of balanced cost sharing is met, there has been a re-calibration to the contribution rates for 2012, resulting in a slight increase to contribution rates.
Public Service Pension Plan, the Canadian Forces- Regular Force Pension Plan, and the Royal Canadian Mounted Police Pension Plan
As part of the ongoing objective to ensure the long-term sustainability of the public sector pension plans, the President of the Treasury Board would like to inform plan members that the contribution rates that were previously set for 2012 will be increased slightly.
The following table sets out plan member contribution rates that will apply to all three pension plans in 2012.
|On earnings up to maximum covered by the Canada/Quebec Pension Plan||6.2%|
|On any earnings over the maximum covered by the Canada/Quebec Pension Plan||8.6%|
Increases in the plan member contribution rates
- Contribution rates will increase beginning in January 2012 for active pension plan members in the three major public sector pension plans, namely the public service pension plan, the Canadian Forces-Regular Force pension plan, and the Royal Canadian Mounted Police pension plan.
- The 2011 member contribution rates are 5.8 percent on the portion of salary up to the maximum covered by the Canada/Quebec Pension Plan — $48,300 for 2011 — and 8.4 per cent on the portion of salary above this maximum.
- For 2012, member contribution rates on the portion of salary up to the maximum covered by the Canada/Quebec Pension Plan ($50,100 for 2012), which was previously set at 6.1%, will increase by one tenth of one percent (0.1%) to 6.2%.
- For 2012 earnings over the maximum covered by the Canada/Quebec Pension Plan, the increase is 0.2%, from the previously set 8.4% to 8.6%.
- For a plan member with an average salary, this contribution rate increase will be about $3.00 per pay period commencing in calendar year 2012.
The continuation of a gradual increase to the contribution rates ensures that pension plan members and the Government of Canada, as employer, contribute to the pension plans in a more balanced way.
More information about the public service pension plan is available on Your Public Service Pension and Benefits Web Portal.
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