You and your employer contribute to the Pension Plan, and these contributions are used to fund your pension. Employees are required to make regular contributions each pay period. Employers match employee contributions either in cash or cash in combination with a transfer from the City Account—a reserve within the Program available to the City and other Participating Employers.

Employee contributions are made by payroll deduction. Your contributions are tax-deductible up to current Canada Revenue Agency (CRA) limits, which means they will reduce the amount of income tax you pay each year. Your member contributions will not exceed the amount required to fund your share of the maximum annual pension permitted under the Income Tax Act (your full annual pensionable earnings will still be used to calculate your best 5-year average).

To see what you contribute to the Pension Plan, check your Annual Statement of Benefits, your pay advice, or your T4 slip.

While contributions are important, your pension is based on service and earnings, not the amount you contribute.

Calculating Contributions

Contributions are lower on earnings up to the YMPE (Year's Maximum Pensionable Earnings) and higher on earnings above it.  The YMPE is set by CRA and changes every year to reflect increases in the average wage.  See the definition of CPP Earnings on the Pension Basics page for an explanation of the YMPE.

Current Contribution Rates

The average contribution rate to the Program is 10.0% of pensionable earnings for both employees and employers.

Employees contribute:

  • 9.5% on pensionable earnings up to the maximum pensionable earnings under the Canada 
    Pension Plan (CPP); and
  • 11.8% on pensionable earnings above the maximum pensionable earnings under the CPP.
Additional Voluntary Contributions

You may increase your retirement savings by making biweekly, voluntary Employee Additional Contributions to the Pension Plan by payroll deduction. You may contribute as much as you like (subject to annual income tax limits). You may start, increase, decrease or stop your Employee Additional Contributions during any pay period by completing an Employee Additional Contributions form. Employee Additional Contributions can be refunded to you on a one-time basis while an employee, or otherwise at retirement, termination of employment, or death. If you elect to make the one-time withdrawal while an employee, you will not be allowed to contribute under the Employee Additional Contributions provision again.

Employee Additional Contributions are tax-deductible. However, they are not matched by your employer, and they do not provide you with any additional Credited Service.

When Contributions End

Your contributions stop automatically when you leave the Pension Plan or retire. Under current tax rules, you must stop contributing to the Pension Plan (and begin collecting your pension) no later than December 31 of the year in which you reach age 71.