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 or are on a long-term disability leave, you may no longer be contributing.)

The amount of these contributions is based on your salary and how much you earn in relation to the year’s maximum pensionable earnings (YMPE),   which is set annually by the federal government and applies to all working Canadians.
 

The contribution rate for all plan members is:

  • 7.93% of your salary up to and including YMPE
  • 9.43% of your salary above YMPE

In 2017 the YMPE was $55,300. If your annual salary was $60,000, your annual pension contribution in 2017 would be $4,828.50. This is calculated as follows:

7.93% x $55,300 = $4,385.29
+
9.43% x ($60,000-$55,300) = $443.21
= $4,828.50

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.
 

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 most members, if you have 35 years of pensionable service, you will no longer contribute to the plan. However, you are an active plan member until you leave your job or retire.


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