|2012-13 Rates||September 2013|
|Total Teacher Contributions||11.31||13.46|
|Salary up to YMPE *||9.60||11.44|
|Salary above YMPE||13.72||16.34|
* YMPE is the Year’s Maximum Pensionable Earnings used by the Canada Pension Plan ($51,100 in 2013)
What does this mean for you?
|Monthly contributions on Salary up to YMPE * ($51,100)||$408.80||$487.15||$78.35|
|Monthly contributions on Salary above YMPE ($40,900)||$467.62||$556.92||$89.30|
What made this increase necessary?
All pension plans, including yours, continue to face funding challenges to secure the benefits promised. Lower expected future investment market returns, poor investment market returns over the past 12 years and the increasing life expectancy of plan members have increased the plan’s deficiency. Contributions need to rise to fund this deficiency. Detailed information about this very important topic can be found in the article, "Teachers’ Pension Plan Funding Sustainability and Contribution Rates.”
Are my pension contributions going to continue to rise?
Pension contributions are not expected to continue to rise significantly. In fact pension contributions will decrease as previous deficiencies are made up.