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.
Effective July 1, 2023, member pension contribution rates will increase by 0.6% of pensionable earnings. The employer normal cost contribution rate will be 234.5% of member contributions, as of July 1, 2023, determined by the actuarial valuation report as of December 31, 2021, filed in 2022.
Contribution Rate Schedule
The following table summarizes the employee and employer contribution schedule for the periods covered by the actuarial valuation report as of December 31, 2021:
|Effective Date||Up to YMPE||Above YMPE||As % employee contributions|
|January 1, 2022||6.4 %||8.2 %||249.3%|
|July 1, 2022||7.0 %||8.8 %||222.0%|
|January 1, 2023||7.0 %||8.8 %||260.8%|
|July 1, 2023||7.6 %||9.4 %||234.5%|
|July 1, 2024||8.2 %||10.0 %||211.8%|
|July 1, 2025||8.8 %||10.6 %||190.2%|
The contribution schedule is established by the actuarial valuation report most recently filed with the regulators. The last actuarial valuation was filed as at December 31, 2021.
The next actuarial valuation must be filed with an effective date no later than December 31, 2024. However, the Board of Trustees may choose to file a report earlier. We will inform our participating employers of any change in the contribution requirements when the next valuation report is filed.