How pension contributions work
You contribute to your pension through automatic payroll deductions. Your employer also contributes to your pension.
How much do I contribute?
As an active member, you contribute to your pension through automatic deductions from each paycheque. (If you have reached 35 years of pensionable service or are on long-term disability, you may no longer be contributing.)
The amount of these contributions depends on:
- when you earn the service, and
- your member group
Through December 31, 2021
The contribution rate for all plan members (except Group 5) is:
- 8.5% of your salary up to and including the year’s maximum pensionable earnings (YMPE)
- 10.0% of your salary above the YMPE
The contribution rate for group 5 members is:
- 10.44% of your salary up to and including the YMPE
- 11.94% of your salary above the YMPE
Beginning January 1, 2022
You will contribute a flat rate on all salary based on your member group:
- Group 1 (all plan members who are not police officers or firefighters): 8.61%
- Group 2 (police officers and firefighters not in group 5): 8.92%
- Group 5 (police officers and firefighters not in group 2): 11.12%
Your contribution includes a portion that is transferred to a fund called the inflation adjustment account.
This account is used to pay for cost-of-living adjustments, or COLA, on current retiree pensions. COLA is not guaranteed but, once granted, becomes part of your lifetime pension.
You may also be contributing to a special agreement.
If you have 35 years of pensionable service, you will no longer contribute to the plan. However, you are an active plan member until you leave your job or retire.