Plan changes for group 1

If you’re in group 1, learn how the changes affect you and improve your lifetime pension. You are a member of group 1 if you are not a police officer or firefighter.

A flat lifetime pension accrual rate

Pension benefits on service on and after January 1, 2022 have the flat lifetime benefit accrual rate of 1.9 per cent of your highest annual salary (HAS). This improves equity among members, regardless of income.

Previously, for every year of service, group 1 members earned a lifetime pension equal to

  • 1.3 per cent of their five-year HAS up to the year’s maximum pensionable earnings (YMPE), and
  • 2.0 per cent of HAS above YMPE.

The YMPE is the maximum salary amount set by the Government of Canada on which you contribute to the Canada Pension Plan.

A flat lifetime benefit accrual rate (of 1.9 per cent of HAS) allows the vast majority of group 1 members to receive a higher lifetime pension. Only the very high income earning members will have a reduced benefit, but they will also have a reduced contribution rate.

If you’re retiring with service before and after January 1, 2022, your benefit is calculated based on the 1.3 per cent/2.0 per cent benefit accrual being applied on all service up to December 31, 2021, and the 1.9 per cent benefit accrual applied on all service after that date.

New rules took effect January 1, 2022. Sign into My Account to run pension estimates.