How pension contributions work

You contribute to your pension through automatic payroll deductions. Your employer also contributes to your pension. 


How much does my employer contribute?

Every time you contribute to your pension, your employer contributes too. The amount your employer contributes depends on your membership.

Type of membership Employer contributions
Regular members (on or after April 1, 2018) 9.85%
Correctional members (on or after August 1, 2018) 12.42%
Ambulance paramedics (on or after April 1, 2020) 12.13%

To see how your employer could contribute to your plan, consider this example. If your annual salary (as a regular plan member) was $60,000 on or after April 1, 2018, your employer's pension contribution in 2019 would be $5,910.00. This is calculated as follows:

9.85% x $60,000 = $5,910.00

Your employer's contribution includes a portion (2.75 per cent of your salary) paid to an inflation adjustment account to fund 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.

Retirement group benefits (which include subsidies for extended health care premiums) are partially funded from a portion of employer contributions that would otherwise go to the IAA.