Contributions

You and your employer make contributions to the Plan based on a percentage of your pensionable earnings. The contribution rates are recommended by the Plan actuary and are subject to change.


Member contributions are automatically deducted from each pay you receive during the year. As of January 1, 2016, contributions are not calculated on overtime earnings. The percentage you and your employer pay are based on one rate up to the Canada Pension Plan’s ‘Yearly Maximum Pensionable Earnings’ or ‘YMPE’, and then another higher rate on earnings above the YMPE.

 

 

Contributions

Effective January 1, 2016* the member contribution rate was set as follows:

 

Contributions

 

* January 1, 1977 to December 31, 2015, the member contribution rate was 9.42% of your base salary up to the YMPE plus 13.96% of your excess salary above the YMPE. and;

Prior to December 31, 1976 and if you were 25 years of age or younger, your contribution rate was 8.42% of your base salary up to the YMPE plus 12.96% of your excess salary above the YMPE.  If you were above 25 years of age, your contribution rate was 9.42%.

 

 

The Yearly Maximum Pensionable Earnings (YMPE) for 2017 is $55,300.

 

 Example Calculation:

 

                              2017 Annual Salary is $57,800

                              Base Salary: $55,300 (2017 YMPE)

                              Excess Salary: $2,500 ($57,800 - $55,300)

 

                              8.80% x $55,300 = $4,866.40

 

                                        plus

 

                              13.10% x $2,500 = $327.50

 

                              Total Member Contributions for 2017 = $5,193.90

 

Member contributions are automatically deducted from each pay you receive throughout the year. 

 

Tax Deductibility of Contributions

Your contributions to the Civic Plan are tax deductible.  Also, you do not pay tax on the contributions your employer pays on your behalf.  Each year your pension contributions and your pension adjustment (PA) are reported on your T4 slip by your employer.  Your PA is used to determine the maximum amount you can contribute to your Registered Retirement Savings Plan (RRSP).  The Canada Revenue Agency uses your earnings, pension adjustment, and RRSP contribution information to advise you each year of the maximum RRSP contribution you can make.

 

 

Voluntary Contributions

You may make voluntary contributions to the Plan in order to increase your post January 1, 1966 base salary pension factor from 1.35% to 2.00%.

 

If you wish to make voluntary contribtions to the Plan you must notify Möbius Benefit Administrators Inc.  The cost to increase the pension factor is acturaially calculated and is the responsibility of the Plan member.  Your employer does not match these contributions.

 

If is important to note that making voluntary contributions can affect the reporting of Pension Adjustments for tax purposes and may reduce the amount you will be able to contribute to your Registered Retirement Savings Plan (RRSP).