How pension contributions work
You contribute to your pension through automatic payroll deductions. Your employer also contributes to your pension.
How much do I contribute?
As an active member, you contribute to your pension through automatic deductions from each paycheque. If you have reached 35 years of pensionable service, you will no longer contribute to the plan; if you are on a long-term disability leave, you may no longer be contributing. However, you are an active plan member until you leave your job or retire.
The amount of these contributions is based on your salary and either a flat accrual (for service earned on or after April 1, 2018) or how much you earned in relation to the year’s maximum pensionable earnings (YMPE; for service earned before April 1, 2018).
Some members of BC's Public Service Pension Plan have higher contribution rates. This includes correctional employees, certain BC Ambulance Service employees, some statutory officers, judges, masters, and members of the Legislative Assembly.
For pensionable service on or after April 1, 2018
You will contribute a single amount of 8.35% of your salary; the amount of your contribution will no longer be based on YMPE.
For example, if your annual salary on or after April 1, 2018, was $60,000, your annual pension contribution in 2019 would be $5,010.00. This is calculated as follows:
8.35% x $60,000 = $5,010.00
For pensionable service earned before April 1, 2018
The contribution rate for all plan members before April 1, 2018, was:
- 7.93% of your salary up to and including YMPE
- 9.43% of your salary above YMPE
Your contribution includes a portion (1.25 per cent) that is transferred to a fund called the inflation adjustment account. This account is used to pay for annual inflation adjustments that may be added to monthly pension benefits. Inflation adjustments are not guaranteed, but once granted, they become part of your basic pension benefit.