YMPE and Maximum Pensionable Salary

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Every January 1, the Year’s Maximum Pensionable Earnings (YMPE) changes, impacting the amount you contribute to the teachers’ pension plans.  

The YMPE is an amount set annually by the federal government to establish the maximum earnings that participants of the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) must contribute.  

Your monthly contribution to the plans is based on a formula using the YMPE, so when the YMPE is adjusted, your contribution deduction will adjust accordingly, even if the actual contribution rate stays the same. The YMPE for 2023 has been set to $66,600 or $5,550 per month.  

The other piece of the contribution puzzle is the maximum pensionable salary (or salary cap), which is applied in accordance with the Income Tax Act. This maximum is updated every January 1, like the YMPE, and will be $195,313.50 in 2023. Plan members do not pay contributions or receive a pension on their salary earned above this amount.   

You can review some examples of how the YMPE and salary cap are applied to a fictional member’s contributions to give you a better understanding of what this means for your situation. 

If you have any questions about how the YMPE or the maximum salary cap affects you, please email us at member@atrf.com or give us a call.