Public Service Pension Contribution Rates

Plan members contribute a percentage of salary to the public service pension plan through payroll deductions. The period during which you contribute to the pension plan is called current service. The contributions you make to your pension plan for current service are tax deductible.

Contribution rates continue to be maintained at the 50:50 employer-employee cost-sharing ratio for the public service pension plan.

The percentage of your salary that is applied towards pension contributions depends on when you began contributing to the public service pension plan.

If you were a member of the public service pension plan on or before December 31, 2012, refer to:

• Pension Eligibility at Age 60 – Contribution Rates.

If you became a member of the public service pension plan on or after January 1, 2013, refer to:

• Pension Eligibility at Age 65 – Contribution Rates.

If you are a Correctional Service Canada employee, you may accumulate operational service, which entitles you to different pension benefits under the Operational Service Provisions. Please refer to the Operational Service Provisions Contribution Rates for the contribution rates and the pension benefits options.

Maximum Period of Contributions

You must stop contributing to the pension plan altogether on January 1 following the year of your 71^st birthday. You cannot contribute after age 71 because the Income Tax Act (ITA) and its Regulations places limitations on benefits that can be provided on a tax-sheltered basis under a registered pension plan such as the public service pension plan.

Your salary earned and your service accumulated after you stop contributing is not included in your pension calculation. The indexing of your pension will be based on the date you stop contributing to the plan.