On July 1, 2023, your pension contribution rates will increase by 0.6 per cent of your pensionable earnings.
Effective July 1, 2023, contribution rate A (the per cent of pensionable earnings below the YMPE*), will increase to 7.6 per cent and contribution rate B (the per cent of pensionable earnings above YMPE), will increase to 9.4%.
*Year’s maximum pensionable earnings (YMPE) is set by the Government of Canada, which is $66,600 for 2023.
Why is this happening?
Since July 1, 2020, member contribution rates have gradually increased by 0.6 per cent of pensionable earnings per year and will do so until the funding for the Plan reaches a 50/50 employer-member cost-sharing ratio.
When will the new contribution rates be reflected on my pay?
Your contributions are deducted directly from your bi-weekly pay. All members from our six participating employers will see the contribution increase on your July 27th pay date.