Contribution rates for the public service pension plan
Since 2006, employee contribution rates have been gradually increasing to reflect the Government of Canada's movement towards a more balanced cost-sharing ratio. Budget 2012 announced that contribution rates will continue to increase over time to move towards an employee:employer cost-sharing ratio of 50:50 for all active and future public service pension plan members.
Legislation has been amended to allow the Budget 2012 changes and the contribution rates will increase beginning in January 2013 for all active public service pension plan members.
Budget 2012 also announced that effective , new employees who become plan members on or after may be eligible to retire with an unreduced public service pension benefit at age 65.
To better align plan member contributions with the differing ages of eligibility to an unreduced pension benefit, two contribution rate tables have been set. The applicable contribution rate table is determined by the date of becoming a member in the public service pension plan:
The Contribution rates for members participating in the plan on or before , table applies to employees who were members in the public service pension plan on or before December 31, 2012, and who will continue to be able to retire with an unreduced pension at age 60 with at least two years of pensionable service (or at age 55 with at least 30 years of service).
Contribution rates for members participating in the plan on or before
| Description | 2013 | 2014 | 2015 |
|---|---|---|---|
| On earnings up to the maximum covered by the Canada/Quebec Pension Plan | 6.85% | 7.50% | 8.15% |
| On any earnings over the maximum covered by the Canada/Quebec Pension Plan | 9.20% | 9.80% | 10.40% |
The Contribution rates for new employees who become plan members on or after , table applies to new employees who become plan members on or after , who may be eligible to retire with an unreduced public service pension benefit at age 65 with at least two years of pensionable service (or at age 60 with at least 30 years of service).
Contribution rates for new employees who become plan members on or after
| Description | 2013 | 2014 | 2015 |
|---|---|---|---|
| On earnings up to the maximum covered by the Canada/Quebec Pension Plan | 6.27% | 6.62% | 7.05% |
| On any earnings over the maximum covered by the Canada/Quebec Pension Plan | 7.63% | 7.89% | 8.54% |
The contribution rates for 2016 and 2017 are not yet available. Once established, the rates will be confirmed and communicated prior to and .
The contribution rates will drop to 1% of salary for plan members who have reached the maximum of 35 years of pensionable service.
Example of 2013 pension contributions per pay
A plan member who was participating in the pension plan on or before , with a salary of $50,000 will pay about $132 per pay for pension contributions in 2013. This is an increase of approximately $13 per pay from the amount paid in 2012.
For more information about contribution rates, visit the Pensionable Service section of the Treasury Board of Canada Secretariat Pensions Web site.
More information about the public service pension plan is available on Your Public Service Pension and Benefits Web Portal.
Page details
- Date modified: