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:
| Member | Employer | ||
| 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% |
Background
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.
Effective July 1, 2022, member pension contribution rates will increase by 0.6% of pensionable earnings. Employer normal cost contribution rate will be 229.6% of member contributions, as of July 1, 2022, determined by the conversion valuation report as at July 1, 2020 filed in December 2020.
Employer Contribution Rate Schedule 2020-2022
The following table summarizes the employee and employer normal cost contribution rate requirements for the periods covered by the conversion valuation report as at July 1, 2020:
Member | Employer | ||
Effective Date | Up to YMPE | Above YMPE | As % employee contributions |
July 1, 2020 | 5.8 % | 7.6 % | 250.8% |
July 1, 2021 | 6.4 % | 8.2 % | 256.9% |
July 1, 2022 | 7.0 % | 8.8 % | 229.6% |
Background
Effective July 1, 2020, the Plan was converted from a single employer pension plan to a jointly sponsored pension plan (JSPP). In accordance with pension legislation, the conversion valuation report must be filed with the regulators no later than nine months after the effective conversion date.
The next actuarial valuation must be filed with an effective date no later than July 1, 2023. 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.
The conversion valuation report as at July 1, 2020 for the WSIB Employees’ Pension Plan (the Plan) was filed in December 2020, which established the new employer normal cost contribution rate effective as of July 1, 2021.
Background
Effective July 1, 2020, the Plan was converted from a single employer pension plan to a jointly sponsored pension plan (JSPP). In accordance pension legislation, the conversion valuation report must be filed with the regulators no later than nine months after the effective conversion date.
The conversion valuation report was filed with the regulators in December 2020, which specifies the new employer normal cost contribution rate of 281.7% of employee contributions as at July 1, 2020. This is an increase from the current rate of 250.8% of employee contributions, based on the previous valuation report as at December 31, 2018, after reflecting the member contribution changes which came into effect on July 1, 2020.
Funding requirement for contribution increase
Prior to the conversion, if an increase in contribution had been established by a valuation report, retroactive employer contributions would be required for the contribution rate increase.
Under funding rules applicable to JSPPs, the increase in the employer normal cost from 250.8% to 281.7% of employee contributions may be deferred up to 12 months and the amount deferred may be paid over a few years.
The Board of Trustees has approved the deferral by 12 months and that the amount deferred will be paid over the period from July 1, 2021 to December 31, 2024. Therefore, no retroactive contributions will be required to cover the contribution increase.
New contribution schedule
The following table summarizes the employee and employer normal cost contribution rate requirements for the periods covered by the conversion valuation report as at July 1, 2020:
Member | Employer | ||
Effective Date | Up to YMPE | Above YMPE | As % employee contributions |
July 1, 2020 | 5.8 % | 7.6 % | 250.8% |
July 1, 2021 | 6.4 % | 8.2 % | 256.9% |
July 1, 2022 | 7.0 % | 8.8 % | 229.6% |
The next actuarial valuation must be filed with an effective date no later than July 1, 2023. However, the Board of Trustees may choose to file a report earlier.
We will inform you of any change in the contribution requirements when the next valuation report is filed.
The best way to help members get their questions answered is direct them to the WISE Trust Pension Contact Centre.
Here’s why:
- They have access to member’s data in real time.
- Can see what members see on My Pension Resource.
- Can walk members through processes and timing.
Other things you can suggest if members ask you questions directly:
- Refer them to wisetrust.ca for them to look around to find information.
- Encourage them to subscribe to receive the latest updates from WISE Trust about their pension.
- Tell them to register for My Pension Resource, if they haven’t already, so they can run their own pension estimates or communicate with the WISE Trust Pension Contact Centre through the Message Centre.
By doing this, you are directing members to the source. The WISE Trust Pension Contact Centre really is a one-stop-shop for members when it comes to their pension information!