Pension contribution rates effective January 1, 2019, for the 3 major public sector pension plans
Effective January 1, 2019, contribution rates for the public service, the Canadian Armed Forces–Regular Force and the Royal Canadian Mounted Police pension plans will change. These changes ensure the sustainability of the public sector pension plans.
Contribution rates continue to be maintained at the 50:50 employer-employee cost-sharing ratio for the public service pension plan.
Plan members contribute a percentage of their salary to the plans through payroll deductions. The contribution rates tables below show the rates for 2018 and 2019.
Contribution Rates Table A applies to:
- public service pension plan members who were participating in the plan before January 1, 2013
- public service pension plan members who are employed or deemed to be employed in operational service within Correctional Service Canada
- Canadian Armed Forces–Regular Force pension plan members (Part I)
- Royal Canadian Mounted Police pension plan members
| From your salary… | In 2018 you contributed… | In 2019 you will contribute… |
|---|---|---|
Note: If you accumulate deemed operational service, you make an additional contribution of 0.62% of your salary to the pension plan for that service. |
||
| On earnings up to the maximum covered by the Canada/Quebec Pension Plan ($57,400 in 2019) | 9.83% | 9.56% |
| On earnings over the maximum covered by the Canada/Quebec Pension Plan | 12.13% | 11.78% |
Contribution Rates Table B applies to:
- public service pension plan members who began participating in the plan on or after January 1, 2013
| From your salary… | In 2018 you contributed… | In 2019 you will contribute… |
|---|---|---|
Note: Contribution rates are reduced to 1% of salary for all plan members who reach the maximum 35 years of pensionable service. |
||
| On earnings up to the maximum covered by the Canada/Quebec Pension Plan ($57,400 in 2019) | 8.77% | 8.68% |
| On earnings over the maximum covered by the Canada/Quebec Pension Plan | 10.46% | 10.18% |
Why are the contribution rates in Table B different than those in Table A?
Employees who became public service pension plan members on or after January 1, 2013, are eligible for an unreduced pension at age 65. These plan members pay lower contribution rates because they must generally wait 5 years longer before they can access a retirement benefit (that is, they receive a benefit that has a lower overall cost and therefore do not pay as much as those who are eligible to receive an unreduced pension at age 60).
Further information
- contribution rates: see the Contribution rates: pension web page
- public service pension plan: see the Pension and benefits web page
- Canadian Armed Forces pension plan: see the Pension web page of National Defence and the Canadian Armed Forces
- Royal Canadian Mounted Police pension plan: see the Pension and benefits for the Royal Canadian Mounted Police web page