## Overview

This section details how members' basic contributions are calculated and includes the following topics:

- Member contributions
- Contribution formula
- Limits and rates for calculating member contributions
- Employer and member contributions
- OPP contributions
- Retroactive salary increases
- OPB's online contribution calculator
- Contribution calculation scenarios
- Related topics

### Member contributions

All members must contribute to the Plan from the Plan Membership Date until such time as the member

- terminates employment and PSPP membership, or
- takes an unpaid leave of absence without pay for more than 30 days AND elects not to contribute for the duration of the leave, or
- becomes eligible for LTIP benefits (at which time the Employer pays both the member and employer shares), or
- is divested out of the PSPP (and membership is suspended),
- commences early or normal retirement, or
- opts out of the PSPP, if membership is optional, or
- dies before retirement.

#### Membership after 65

The following members have the option of continuing to contribute to the Plan until November 30^{th}of the calendar year in which they reach age 71:

- They continue in active employment after the age of 65.
- They have retired, began pension payments, and then returned to work (i.e., re-employed pensioners who rejoin the PSPP).

### Contribution formula

Member's regular contributions are calculated using the following formula:

7.4% of Annual Salary up to the YMPE + 10.5% of Annual Salary above the YMPE

**Annual salary** means the member's regular base salary. It does not include overtime pay, payments in lieu of benefits, or any other special payments.

**YMPE** - The Year's Maximum Pensionable Earnings (YMPE) is set by the federal government to determine how much Canadians contribute to the Canada Pension Plan (CPP). The YMPE is adjusted each year based on the average wage in Canada. For 2022, the YMPE is $64,900.

The member contributes:

- $7.40 for every $100 they earn up to the YMPE, plus
- $10.50 for every $100 they earn above the YMPE

**Note:** Employers must match all regular contributions that the member makes to the PSPP.

### Limits and rates for calculating member contributions

For your convenience, we've provided the current and historical limits/rates that you will need to calculate member/employer contributions.

#### Current Canada Pension Plan YBE and YMPE rates

- 2022 YBE (Year's Basic Earnings) is $3,500
- 2022 YMPE (Year's Maximum Pensionable Earnings) is $64,900

Access historicalYBEandYMPEfigures and pastPSPPcontributionrates.

### Employer and member contributions

The employer must pay the following contributions amounts into the PSPP Fund:

- all contributions deducted from the member's contributory earnings plus
- matching employer contributions plus
- contributions made by the employer on behalf of the members on LTIP.

### OPP additional contributions

The following table summarizes the current employer and member contribution rates for Ontario Provincial Police (OPP) members.

Contribution Rates | Officers, Commissioned Officers, Deputy Commissioners & Commissioner | Civilians |
---|---|---|

Basic Contributions Up to YMPE | 8.2% | 7.775% |

Basic Contributions Above YMPE. | 11.3% | 10.875% |

Additional ContributionsFor OPP 50/30 Early Retirement Provision | 1.5% | n/a |

Additional ContributionsFor OPP Factor 85 Early Retirement Provision | n/a | 0.77% |

Total Contributions Up to YMPE | 9.7% | 8.545% |

Total Contributions Above YMPE | 12.8% | 11.645% |

**Important:** The basic contribution rates for OPP officers and civilians are higher than the rates for regular members in order to fund additional retirement provisions available to them.

### Retroactive salary increases

When a member receives retroactive salary increase payments, the Employer must recalculate the member's PSPP contributions using

- the new calculation, based on the revised salary, and
- the contribution rates in effect for the retroactive period.

**Note:** Please remember that a retroactive salary increase may also require you to amend the member's annual Pension Adjustment (PA).

#### Application of Retroactive Salary Increases:

We require retroactive contributions for retroactive salary increases for all members, even if the member:

- is on a leave
- is receiving LTIP benefits (if the change is prior to the beginning of the LTIP period), or
- has terminated, divested, died, or retired.

### OPB's online contribution calculator

You can use OPB's online contribution calculator to determine the required contributions for a number of different scenarios. The calculator is located in OPB's Employer Portal

Links:

- OPB's Employer Portal(opens in a new tab)
- Calculatorinstructions (Employer Portal Reference Manual)

### Contribution calculation scenarios

The contribution rates for members and employers have been the same for a number of years. Therefore, the calculations used in the scenarios we've provided for you below can be used to determine both the member and employer portion of the basic contributions that must be remitted each payroll cycle.

Use the links below to view the contribution calculations for the following scenarios:

#### Bi-weekly contribution calculation scenarios

**Scenario 1:**

Calculating contributions for a regular, full-time member**Scenario 2:**

Calculating contributions for a regular, part-time member**Scenario 3:**

Calculating contributions for an unclassified member**Scenario 4:**

Calculating the initial contributions for a member who is enrolled midway through a payroll cycle**Scenario 5:**

Calculating retroactive contributions for a member who receives a retroactive salary increase

#### Semi-monthly contribution calculation scenarios

**Scenario 1:**

Calculating contributions for a regular, full-time member**Scenario 2:**

Calculating the initial contributions for a regular, full-time member who is enrolled midway through a payroll cycle

** **

### Related topics

Please refer to these related topics:

- Buybacks and Transfers for explanations of
- buybackcontributions, or
- MOPPStransfercontributions
- RTAtransfercontributions.

## Historical amounts

### CPP: YBE and YMPE amounts from 2003 to 2022

Calendar Year | YBE | YMPE |
---|---|---|

2003 | $3,500 | $39,900 |

2004 | $3,500 | $40,500 |

2005 | $3,500 | $41,100 |

2006 | $3,500 | $42,100 |

2007 | $3,500 | $43,700 |

2008 | $3,500 | $44,900 |

2009 | $3,500 | $46,300 |

2010 | $3,500 | $47,200 |

2011 | $3,500 | $48,300 |

2012 | $3,500 | $50,100 |

2013 | $3,500 | $51,100 |

2014 | $3,500 | $52,500 |

2015 | $3,500 | $53,600 |

2016 | $3,500 | $54,900 |

2017 | $3,500 | $55,300 |

2018 | $3,500 | $55,900 |

2019 | $3,500 | $57,400 |

2020 | $3,500 | $58,700 |

2021 | $3,500 | $61,600 |

2022 | $3,500 | $64,900 |

### PSPP Contribution Rates from January 2003 to December 2022

Effective Date | Employee Contributions | Employer Contributions | ||||
---|---|---|---|---|---|---|

Rate 1 up to YBE | Rate 2 between YBE and YMPE | Rate 3 above YMPE | Rate 4 up to YBE | Rate 5 between YBE and YMPE | Rate 6 above YMPE | |

Jan-2003 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Mar-2003 | 5% | 3.2% | 5% | 8% | 6.2% | 8% |

Mar-2004 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Jan-2005 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Jan-2006 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Jan-2007 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Jan-2008 | 8% | 6.2% | 8% | 8% | 6.2% | 8% |

Effective Date | Employee Contributions | Employer Contributions | ||
---|---|---|---|---|

Rate 1 % of Annual Salary up to the YMPE | Rate 2 % of Annual Salary above YMPE | Rate 3 % of Annual Salary up to YMPE | Rate 4 % of Annual Salary above the YMPE | |

Jan-2009 | 6.4% | 8.75% | 6.4% | 8.75% |

Jan-2010 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2011 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2012 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2013 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2014 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2015 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2016 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2017 | 6.4% | 9.5% | 6.4% | 9.5% |

Jan-2018 | 6.4% | 9.5% | 6.4% | 9.5% |

Apr-2018 | 6.9% | 10% | 6.9% | 10% |

Apr-2019 | 7.4% | 10.5% | 7.4% | 10.5% |

Jan-2020 | 7.4% | 10.5% | 7.4% | 10.5% |

Jan-2021 | 7.4% | 10.5% | 7.4% | 10.5% |

Jna-2022 | 7.4% | 10.5% | 7.4% | 10.5% |

## Bi-weekly contribution calculation scenarios

Use the following scenarios to calculate the member and employer portions of the contributions required for each bi-weekly payroll period.

### Scenario 1: Calculating contributions for a regular, full-time member

Calculate the basic PSPP pension contributions for the member and employer as follows:

- YMPE (2022): $64,900
- Salary per bi-weekly pay cycle: $3,500.00

Step | Action | Example for Employer on a bi-weekly pay cycle |
---|---|---|

1 | Pro-rate the YMPE by the number of pay cycles in the calendar year. | Number of bi-weekly pay cycles: 26* Pro-rated YMPE: $64,900 ÷ 26** = $2,496.15 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $2,496.15 × 7.4% = $184.72 |

3 | If the salary rate is higher than the pro-rated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($3,500.00 − $2,496.15) × 10.5% = $105.40 |

4 | Add the amounts calculated in Steps 2 and 3 together and then round the total to two decimal places.
| $184.72 + $105.40 = $290.12 |

* For this example, we used 26 pay cycles; Ministries pro-rate the YMPE using 26.08928.

** For Agencies, Boards and Commissions with 26 pay cycles (i.e., bi-weekly); every 11th year will be a 27-pay year. When in a 27-pay year the YMPE is to be pro-rated using 27 pays.

### Scenario 2: Calculating contributions for a regular, part-time (RPT) member

**Important:**This scenario applies only to members who work on a regular part-time basis each payroll period. See Scenario 3 for direction on how to calculate contributions for a member employed on an unclassified basis (i.e., variable hours). Please remember that overtime is not pensionable and cannot be included in the calculation.

Calculate the basic PSPP pension contributions for the member and employer as follows:

- YMPE (2022): $64,900
- Regular part-time (RPT) ratio: 80%
- Bi-weekly salary rate for a member employed at the full-time equivalent: $3,625.00

Step | Action | Example for Employer on a bi-weekly pay cycle |
---|---|---|

1 | Pro-rate the YMPE by the number of pay cycles in the calendar year. | Number of bi-weekly pay cycles: 26* Full-time equivalent salary per bi-weekly pay cycle: $3,625 Pro-rated YMPE: $64,900 ÷ 26** = $2,496.15 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $2,496.15 × 7.4% = $184.72 |

3 | If the salary rate of the full-time equivalent is higher than the pro-rated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($3,625.00 − $2,496.15) × 10.5% = $118.53 |

4 | Add the amounts calculated in Steps 2 and 3 together to determine the required contributions for a full-time member. | = $184.72 + $118.53 = $303.25 |

5 | Pro-rate the contribution amount for a full-time member calculated in step 4 by the member's regular part-time ratio. Finally, round the resulting amount to two decimals places.
| = $303.25 × 80% = $242.60 |

* For this example, we used 26 pay cycles; Ministries pro-rate the YMPE using 26.08928.

** For Agencies, Boards and Commissions with 26 pay cycles (i.e., bi-weekly); every 11th year will be a 27-pay year. When in a 27-pay year the YMPE is to be pro-rated using 27 pays.

### Scenario 3: Calculating contributions for an unclassified member

**Important:**This scenario applies only to members who work variable hours each payroll period. See Scenario 2 for direction on how to calculate contributions for a member employed a regular, part-time basis.

Calculate the basic PSPP pension contributions for the member and employer as follows:

- YMPE (2022): $64,900
- Member worked 60 hours during the payroll period. The standard bi-weekly hours are 72.5 hours
- Bi-weekly Salary Rate for a member employed at the full-time equivalent: $3,250.00

Step | Action | Example for Employer on a bi-weekly pay cycle |
---|---|---|

1 | Pro-rate the YMPE by the number of pay cycles in the calendar year. | Number of bi-weekly pay cycles: 26* Salary per bi-weekly pay cycle at the full-time equivalent: $3,250 Pro-rated YMPE: $64,900 ÷ 26** = $2,496.15 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $2,496.15 × 7.4% = $184.72 |

3 | If the salary rate at the full-time equivalent is higher than the pro-rated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($3,250.00 − $2,496.15) × 10.5% = $79.15 |

4 | Add the amounts calculated in Steps 3 and 4 together to determine the required contributions for a full-time member. | = $184.72 + $79.15 = $263.87 |

5 | Pro-rate the contribution amount for a full-time member calculated in step 4 by the number of hours the unclassified member actually worked. Finally, round the resulting amount to two decimals places.
| = $263.87 ÷ 72.5 × 60 = $218.38 |

* For this example, we used 26 pay cycles; Ministries pro-rate the YMPE using 26.08928.

** For Agencies, Boards and Commissions with 26 pay cycles (i.e., bi-weekly); every 11th year will be a 27-pay year. When in a 27-pay year the YMPE is to be pro-rated using 27 pays.

### Scenario 4: Calculating the initial contributions for a member who is enrolled or terminated midway through a payroll cycle

Calculate the basic PSPP pension contributions for a regular full-time member and employer as follows:

- YMPE (2022): $64,900
- Bi-weekly salary rate: $3,500.00
- Days worked in first pay period: 5 days

**Note:**You can also use the steps below to calculate the required contributions in the member's*final*payroll cycle if plan membership ends during a payroll cycle.

Step | Action | Example for Employer on a bi-weekly pay cycle |
---|---|---|

1 | Pro-rate the YMPE by the number of pay cycles in the calendar year. | Number of bi-weekly pay cycles: 26* Salary per bi-weekly pay cycle: $3,500 Pro-rated YMPE: $64,900 ÷ 26** = $2,496.15 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $2,496.15 × 7.4% = $184.72 |

3 | If the salary rate is higher than the pro-rated YMPE, multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($3,500.00 − $2,496.15) × 10.5% = $105.40 |

4 | Add the amounts calculated in Steps 2 and 3 together to determine the contributions required if the member had been enrolled for a full pay cycle. | = $184.72 + $105.40 = $290.12 |

5 | Pro-rate the contributions calculated in Step 4 by the actual no. of days the member contributed, then round the pro-rated figure to two decimal places.
| = $290.12 ÷ 10 × 5 =$145.06 |

* For this example, we used 26 pay cycles; Ministries pro-rate the YMPE using 26.08928.

### Scenario 5: Calculating retroactive contributions for a member who receives a retroactive salary increase

Calculate the basic PSPP pension contributions for a regular full-time member and the employer in the initial payroll cycle as follows:

- YMPE (2022): $64,900
- Prior bi-weekly salary rate: $3,500
- Prior bi-weekly 2022 contribution amount required: $290.12
- New bi-weekly Salary Rate: $3,850.00
- Number of payroll cycles that passed where contributions should have been calculated using the new salary rate: 5

Step | Action | Example for Employer on a bi-weekly pay cycle |
---|---|---|

1 | Pro-rate the YMPE using the number of cycles in a calendar year. | Number of bi-weekly pay cycles: 26* Salary per bi-weekly pay cycle: $3,850.00 Pro-rated YMPE: $64,900 ÷ 26** = $2,496.15 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $2,496.15 × 7.4% = $184.72 |

3 | If the member's new salary is higher than the pro-rated YMPE, then multiply the difference by 10.5% (contributions rate on salary above the YMPE).
| ($3,850.00 − $2,496.15) × 10.5% = $142.15 |

4 | Add the amounts in Steps 2 and 3 and round the total to two decimal places.
| $184.72 + $142.15 = $326.87 |

Calculate Arrears Contributions | ||

5 | Calculate the difference between the original bi-weekly contribution amount and the adjusted amount.
| $326.87 (new contributions) − $290.12 (old contributions)= $36.75 |

6 | Calculate the total arrears owed by multiplying the retroactive contribution amount calculated in step 5 by the number of pay cycles where the adjusted contribution amount should have been deducted (i.e., 5 pay cycles). | $36.75 × 5 = $183.75 |

7 | Deduct the new contribution amount and the arrears from the member’s pensionable salary for the next pay cycle. All contributions are matched by the employer. | New bi-weekly contributions: $326.87 Arrears contributions (total): $183.75 Total: $510.62 |

* For this example, we used 26 pay cycles; Ministries pro-rate the YMPE using 26.08928.

## Semi-monthly contribution calculation scenarios

Use the following scenarios to calculate the member and employer portions of the contributions required for each semi-monthly payroll period.

### Scenario 1: Calculating contributions for a regular, full-time member

Calculate the basic PSPP pension contributions for the member and employer as follows:

- YMPE (2022): $64,900
- Salary per semi-monthly pay cycle: $3,250

Step | Action | Example for Employer on a semi-monthly pay cycle |
---|---|---|

1 | Pro-rate the YMPE by the number of pay cycles in the calendar year. | Number of semi-monthly pay cycles: 24 Pro-rated YMPE: $64,900 ÷ 24 = $2,704.17 |

2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to YMPE).
| $2,704.17 × 7.4% = $200.11 |

3 | If the salary rate is higher than the pro-rated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($3,250 − $2,704.17) × 10.5% = $57.31 |

4 | Add the amounts calculated in Steps 2 and 3 together and round the total to two decimal places.
| $200.11 + $57.31 = $257.42 |

### Scenario 2: Calculating contributions for a member who is enrolled midway through a payroll cycle

Calculate the basic PSPP pension contributions for a regular full-time member and the employer in the initial payroll cycle as follows:

- YMPE (2022): $64,900
- Annual Salary Rate: $95,000
- Payroll period where enrolment occurred: September 1st to 15th
- Number of days enrolled in the PSPP: 10 (i.e., member enrolled on September 6th)

**Note:**You can also use the steps below to calculate contributions in the member's*final*payroll cycle if plan membership ends during a payroll cycle.

Step | Action | Example for Employer on a semi-monthly pay cycle |
---|---|---|

1 | Multiply the annual YMPE by 7.4% (contribution rate on salary up to the YMPE).
| $64,900 × 7.4% = $4,802.60 |

2 | If the member's annual salary is higher than the YMPE, multiply the difference by 10.5% (contribution rate on salary above the YMPE).
| ($95,000 − $64,900) × 10.5% = $3,160.50 |

3 | Add the figures calculated in Steps 1 and 2 to calculate the annual contribution amount. | $4,802.60 + 3,160.50 = $7,963.10 |

4 | Determine the daily contribution amount (i.e., divide the annual contribution figure by 365 days, or 366 days in leap years). | = $7,963.10 ÷ 365 days = $21.82 per day |

5 | Determine the contributions that must be remitted for the initial payroll cycle (i.e., multiply the figure calculated in step 4 by the number of calendar days the member was enrolled in the PSPP; e.g., 10 days).
| $21.82 × 10 = $218.20 |

## FAQs

### How is pension contributions calculated? ›

The pension contribution is calculated as **a percentage of earnings between the qualifying earnings lower threshold and the qualifying earnings upper threshold**.

**How is Hoopp contribution calculated? ›**

To calculate your monthly pension, we use:

**For each year of contributory service, you receive 1.5% of your average annualized earnings up to the average YMPE, plus 2% of your average annualized earnings above the average YMPE**.

**How do I calculate my Ympe? ›**

For 2022, the YMPE is $64,900. The member contributes: **$7.40 for every $100 they earn up to the YMPE, plus**. **$10.50 for every $100 they earn above the YMPE**.

**Are pension contributions based on gross salary? ›**

**Contributions are based on all earnings before tax**. This would include things like bonus, overtime, commission.

**How is basic pension calculated? ›**

**Average Salary * Pensionable Service / 70** where, Average Salary means the average of the Basic Salary + DA combined, drawn in the last 12 months, and. Pensionable Service means the number of years worked in the organized sector after 15th November, 1995.

**What is the basic pension contribution? ›**

The amount you and your staff member pay into your pension scheme may vary depending on which pension scheme you choose. However, by law, you and your staff have to pay a minimum amount into your scheme. This is set at **8% of your member of staff's earnings**.

**What is the HOOPP pension increase for 2022? ›**

The Board approved an increase of **4.8%** to all pensions and deferred pensions. The increase is effective April 1, 2022 and is the maximum allowable for the year based on the Consumer Price Index (CPI).

**Is hoop a good pension? ›**

It is **one of the largest and most respected pension plans in Canada** and is an industry leader among multi-employer plans.

**How do you calculate benefits? ›**

Calculate the average benefits load for all employees by **taking the total annual amount spent by the company on benefits and dividing it by the total annual amount spent on salary**.

**How many years of service is required for full pension? ›**

6.1 Linkage Of full pension with 33 years of qualifying service shall be dispensed with. Once a Government servant has rendered the minimum qualifying service of twenty years, pension shall be paid at 50% of the emolument or average emoluments received during the last 10 months, whichever is more beneficial to him.

### Is pension calculated on basic salary? ›

W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.

**Is pension calculated from gross or net? ›**

Your pension contributions are deducted from your **gross pensionable pay**. Gross pay is the pensionable pay amount before any tax, NI or other deductions have been taken.

**What is the minimum pension contribution 2022? ›**

contribution rates for employers and employees, where the minimum for a qualifying pension scheme in 2022/23 is **8% total contributions (including tax relief) on relevant earnings, of which at least 3% is from the employer**.

**Is basic pension taxable? ›**

**Your state pension counts towards your taxable income, but it will be paid to you gross (before any tax is deducted)**. If your total income from all sources, including the state pension, is greater than your tax-free personal allowance (£12,570 for 2022/23 tax year), tax on your state pension is due.

**How much is the basic age pension? ›**

Latest Age Pension rates (from 20 September 2022)

**Single: $1,026.50 per fortnight (approximately $26,689 per year)** Couple (each): $773.80 per fortnight (approximately $20,119 per year) Couple (combined): $1,547.60 per fortnight (approximately $40,238 per year)

**What is basic contribution? ›**

Basic Contribution means **the Participating Employee's Earnings multiplied by the Cost Of Funding**.

**What is the rule of thumb for pension contributions? ›**

**Take the age you start your pension and halve it.** **Then put this % of your pre-tax salary into your pension each year until you retire**. So someone starting aged 32 should contribute 16% of their salary for the rest of their working life.

**What are the four basic components of pension expense? ›**

Answer and Explanation: The components of pension expense are **service cost, interest on the liability, return on plan assets, amortization of prior service cost and any gain or loss**.

**What rise will pensioners get in April 2022? ›**

In April 2022, there was a **3.1%** increase in the full new state pension. Whether you actually get the full amount is based on your national insurance record when you reach state pension age. You will only receive the full amount if you have a minimum 35 full qualifying years of contributions.

**Can you cash out your Hoopp pension? ›**

Please note that if you are age 55 or older and ending your employment at all HOOPP employers, you have the option to start receiving your monthly pension immediately. You have two main options when leaving your HOOPP employer: stay a HOOPP member or **take your pension out of the Plan**.

### Are pensioners getting a rise in March 2022? ›

These changes include: **The government age pension usually increases in March and again in September**. Thresholds for income and assets test are indexed in March, July and September. Super income stream minimum drawdowns are reviewed every July.

**What is a decent pension amount? ›**

What is a good pension amount? Some advisers recommend that you save up **10 times your average working-life salary** by the time you retire.

**What are the best pensions in Ontario? ›**

- 1| Intact Investment Management Inc. ...
- 2| Public Service Pension Plan (Federal)1. ...
- 3| Canadian Forces Pension Plan 1. ...
- 4| Royal Canadian Mounted Police Pension Plan 1. ...
- 5| Alberta - Management Employees Pension Plan. ...
- 6| Alberta - Special Forces Pension Plan. ...
- 7| ABRPPVM - Montreal Police Pension Fund.

**How much does the average retiree retire with? ›**

According to Northwestern Mutual's 2021 Planning & Progress Study, there are signs that Americans may be increasing their personal savings. The average personal savings increased by 10%: from $65,900 in 2020 to $73,100 in 2021. Likewise, the average retirement savings increased by 13%: from $87,500 to **$98,800**.

**How are total salary benefits calculated? ›**

**How to Calculate Your Total Compensation**

- Start with your salary (that's likely the largest number in your total compensation, after all).
- Add the value of your employer-provided health insurance. ...
- Add the value of your 401(k) match or other retirement benefits that your company pays for.

**How is annual benefit calculated? ›**

For example, a defined benefit plan may provide a flat benefit of $400 for every year of service. For an employee with 35 years of service, the employer calculates the annual benefit as follows: **Years * flat compensation figure = annual retirement benefit**. The calculation yields: 35 * $400= $14,000 per year.

**How are monthly benefits calculated? ›**

Calculate Average Indexed Monthly Earnings (AIME).

Do this by applying an indexing factor to each year of earnings to adjust for inflation; adding together your highest 35-years of adjusted earnings; dividing by 35 to find your annual indexed earnings; and dividing by 12 to determine your monthly indexed earnings.

**What is contribution rate formula? ›**

The contribution margin ratio per unit formula would be = **(Selling price per unit – Variable cost per unit)** The contribution would be = (Margin per Unit * Number of Units Sold) The contribution ratio would be = margin / Sales.

**Which of the following is the right formula for contribution? ›**

Answer and Explanation: The correct formula for calculating the contribution margin ratio is d) **contribution margin / net sales revenue**.

**What is included in contribution? ›**

What is Contribution? Contribution is **the amount of earnings remaining after all direct costs have been subtracted from revenue**. This remainder is the amount available to pay for any fixed costs that a business incurs during a reporting period. Any excess of contribution over fixed costs equals the profit earned.

### What is the formula for break-even? ›

To calculate the break-even point in units use the formula: **Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)** or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. Here's What We'll Cover: What Is the Break-Even Point?

**What is the total cost at the break-even point? ›**

The break-even point is the point at which **total cost and total revenue are equal**, meaning there is no loss or gain for your small business. In other words, you've reached the level of production at which the costs of production equals the revenues for a product.

**How do you calculate break-even chart? ›**

To calculate break-even point based on units: **Divide fixed costs by the revenue per unit minus the variable cost per unit**. The fixed costs are those that do not change regardless of units are sold. The revenue is the price for which you're selling the product minus the variable costs, like labour and materials.

**Is it good to commute pension? ›**

Again, even after pay commission effect, the gap between maximum commuted and non-commuted pension is only Rs 22,410 while the officer gets Rs 23.88 Lakhs as bulk if he commutes by 50%. **We strongly recommend that all officers should commute their pension to the maximum allowed 50%**.

**Does pension double after 80 years? ›**

**Pension goes up by 20%, 30%, 40%, 50% and 100% after 80 years** - Latest CCS (Pension) Rule 2021 | The Financial Express.

**Does family pension increase after 75 years? ›**

3000. 2) In para 3.28 to consider the demand of Pensioners Associations for 5% additional quantum of Pension on attaining the age of 65 years, 10% on 70 years, 15% on 75 years and 20% on 80 years to the Pensioners.

**What is the difference between basic salary and pensionable salary? ›**

What is the difference between Pensionable and non-pensionable salary? A: **Pensionable earnings would be the income/remuneration used by your Employer to calculate your pension or provident fund contributions**, which means that if your company deducts pension from your salary/ remuneration then it is pensionable income.

**Does basic salary include contributions? ›**

Basic salary, also called base salary, is the amount of money a salaried employee regularly earns before **any additions or deductions are applied to their earnings**. Additions and deductions to basic salary can significantly affect the size of an employee's paycheck.

**What of basic salary is Subsidised by the employer towards pension? ›**

What does your employer pay? Your employer's contribution is **13%** of your pensionable salary.

**Can you backdate pension contributions? ›**

When you set up your pension scheme **you should tell the scheme provider that you need to backdate contributions**. You may wish to check if they can help you calculate the amounts you need to repay and tell you what you need to do to make these payments.

### Is it worth paying into a pension at 60? ›

You can still be financially secure at retirement even if you start saving with a workplace pension later in life. Every time you pay into a workplace pension, you'll get contributions from your employer and extra money from government tax relief if you're eligible.

**How can I avoid paying tax on my pension? ›**

**If you have a defined contribution pension (the most common kind), you can take 25 per cent of your pension free of income tax**. Usually this is done by taking a quarter of the pot in a single lump sum, but it is also possible to take a series of smaller lump sums with 25 per cent of each one being tax-free.

**How is pension contribution calculated? ›**

The pension contribution is calculated as **a percentage of earnings between the qualifying earnings lower threshold and the qualifying earnings upper threshold**.

**How do I calculate my minimum pension? ›**

To calculate the minimum payment amount, **multiply the minimum annual payment amount by the remaining number of days in the financial year and divide by 365 (or 366 in a leap year)**.

**What is the max Canada pension for 2022? ›**

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600—up from **$64,900** in 2022. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

**How many percent does an employee contribute for pension? ›**

The PRA 2014 provides that the minimum rate of contribution is **18 percent of the employee's monthly emoluments** comprising 10 percent by the employer and 8 percent by the employee.

**What percentage of my salary should I contribute to my pension? ›**

Your personal situation

**12.5% of earnings** is our general recommendation, but the actual amount you'll need to save depends on your own situation. For example: When you start: The earlier you start, the less you'll need to save each month.

**Is it worth buying extra pension years? ›**

Buy 'extra' pension years

**This could lead to a big increase in your basic state pension payout over your retirement**. If you're eligible, and you could benefit by boosting, buying extra years involves paying what are called 'voluntary class 3 NI contributions'.

**Is it worth putting a lump sum into a pension? ›**

Lump in a lump sum

**If you come into some cash, paying a lump sum into your pension is a quick and easy way to give it a boost**. And as with other payments into your plan, the government will top it up with tax relief (up to a certain limits).

**How can I maximize my pension contributions? ›**

**How to make the most of your contributions**

- Check to see if your employer will contribute more. Some employers increase their contributions if you increase the monthly amount you put aside as well. ...
- Consider making extra contributions when you have the money. ...
- Check you are claiming tax relief. ...
- Two allowances to keep in mind.

### How much should I have in my pension at 40? ›

If you begin saving at age 20, you should aim to be putting away 10% of your annual income; if you begin at 30, 15% of your income is recommended; and so forth. So, therefore, It is suggested that at the age of 40, you should really be putting **20% of your wages** into your pension pot.

**How much should I have in my pension at 50? ›**

At the age of 50, ideally, you would have wanted to save over 4 times your annual salary if you would like to retire comfortably. At this age, you should be considering putting **25% of your salary** into your pension pot, if not more.