Member news: February 17, 2022
Get ready: Pension improvements for correctional employees begin April 1, 2022
In November 2021, the Public Service Pension Board of Trustees announced it will improve pensions for correctional employees in BCGEU component 1 starting April 1, 2022. You can find more information about these improvements in the Plan changes section of the website.
Your contribution rate and YMPE
Starting April 1, 2022, your contribution rate will be integrated with the year’s maximum pensionable earnings, or YMPE. The federal government sets the YMPE rate each year: the rate for 2022 is $64,900.
Your contribution rate will change from a flat rate formula of 8.35 per cent to:
- 8.25 per cent up to YMPE
- 8.95 per cent over YMPE
This means you will see a difference on your paycheque in the first pay period after April 1, 2022.
Improved pension accrual rate
Your pension accrual rate will also go up starting April 1, 2022. It will increase to 1.60 from the previous 1.35 per cent on earnings up to the YMPE. Your accrual rate on earnings above the YMPE (2.00 per cent) and your bridge benefit accrual rate (0.65 per cent) remain the same.
This means you earn more pension on service earned on and after April 1, 2022.
Contribution refund cheques are coming
You will receive a refund of 0.35 per cent of salary for the extra contributions you made under the flat rate formula in effect from August 1, 2018 to March 31, 2022. This refund ensures your contribution rate and accrual rate are aligned retroactively. Your refund will be issued by cheque after we complete the plan’s fiscal year-end reporting. All eligible members will receive their cheque by the end of October 2022.
Please validate your mailing address
Please ensure your mailing address is correct in My Account and with your employer. Checking this now will help ensure you get your refund cheque.
Related content for February 17 Member news
Member News: Pensions improve for correctional employees starting April 1, 2022
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