When you join the plan, you automatically become a non-contributory member. This means you earn benefits without having to make any contributions to the plan.
You can, however, choose to earn more benefits under the plan by becoming a contributory member.
The table below compares your contributions under the non-contributory and contributory options.
| If you are a ... |
You contribute the following amount annually... |
| Non-contributory member |
Nothing |
| Contributory member |
4.5% of your pensionable earnings up to the YMPE
PLUS
6% of any pensionable earnings in excess of the YMPE
Contributions are made by regular payroll deductions.
Your contributions are tax deductible, subject to limits set by the Income Tax Act and Regulations. |
You may choose to go from being a contributory member to a non-contributory member, and vice versa, as of January 1 of each calendar year. To do so, you must submit your written request to the pension specialists at Benefits Services by the end of November of the preceding calendar year.
You may not withdraw your contributions. Pension laws state you can only use your accumulated pension plan benefits for retirement income, unless your employment ends or you die before retirement.
Also, you cannot:
- assign your contributions;
- borrow against your contributions or earned benefits (e.g., as loan collateral); or
- use the contributions for anything that is not directly related to obtaining a pension.
