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 30thof 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 2024, the YMPE is $68,500.
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
- 2024 YBE (Year's Basic Earnings) is $3,500
- 2024 YMPE (Year's Maximum Pensionable Earnings) is $68,500
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 Contributions For OPP 50/30 Early Retirement Provision | 1.5% | n/a |
| Additional Contributions For 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 2023
| 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 |
| 2023 | $3,500 | $66,600 |
PSPP Contribution Rates from January 2003 to December 2023
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% |
| Jan-2022 | 7.4% | 10.5% | 7.4% | 10.5% |
| Jan-2023 | 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 (2024): $68,500
- 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: $68,500 ÷ 26** = $2,634.62 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note:Use the bi-weekly salary rate instead of the prorated YMPE, if the salary rate is lower than the prorated bi-weekly YMPE. | $2,634.62 × 7.4% = $194.96 |
| 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). Note:This figure is zero if the bi-weekly salary rate is less than the prorated YMPE. | ($3,500.00 − $2,634.62) × 10.5% = $90.86 |
| 4 | Add the amounts calculated in Steps 2 and 3 together and then round the total to two decimal places. Result:Each pay cycle, this amount must be deducted from the member’s pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. | $194.96 + $90.86 = $285.82 |
* 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 (2024): $68,500
- 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: $68,500 ÷ 26** = $2,634.62 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note:Use the full-time bi-weekly salary rate instead of the prorated YMPE, if the full-time bi-weekly rate is lower than prorated bi-weekly YMPE. | $2,634.62 × 7.4% = $194.96 |
| 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). Note:This figure is zero if the full-time equivalent bi-weekly salary rate of the full-time equivalent is less than the prorated YMPE. | ($3,625.00 − $2,634.62) × 10.5% = $103.99 |
| 4 | Add the amounts calculated in Steps 2 and 3 together to determine the required contributions for a full-time member. | = $194.96 + $103.99 = $298.95 |
| 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. Result:Each pay period, this amount must be deducted from the RPT member's pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. | = $298.95 × 80% = $239.16 |
* 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 (2024): $68,500
- 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: $68,500 ÷ 26** = $2,634.62 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note:Use the bi-weekly salary rate instead of the prorated YMPE, if the salary rate is lower than prorated bi-weekly YMPE. | $2,634.62 × 7.4% = $194.96 |
| 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). Note:This figure is zero if the bi-weekly salary rate is less than the prorated YMPE. | ($3,250.00 − $2,634.62) × 10.5% = $64.61 |
| 4 | Add the amounts calculated in Steps 3 and 4 together to determine the required contributions for a full-time member. | = $194.96 + $64.61 = $259.57 |
| 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. Result:Each pay period, this amount must be deducted from the unclassified member's pensionable salary, matched by the employer, and remitted to OPB. Note that contributions may differ on a pay period basis if the member's salary rate or hours worked changes. | = $259.57 ÷ 72.5 × 60 = $214.82 |
* 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 (2024): $68,500
- 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'sfinalpayroll 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: $68,500 ÷ 26** = $2,634.61 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note:Use the bi-weekly salary rate instead of the prorated YMPE, if the salary rate is lower than prorated bi-weekly YMPE. | $2,634.61 × 7.4% = $194.96 |
| 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). Note:This figure is zero if the bi-weekly salary rate is less than the prorated YMPE. | ($3,500.00 − $2,634.61) × 10.5% = $90.86 |
| 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. | = $194.96 + $90.86 = $285.82 |
| 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. Note:Each full pay period has 10 working days. Result:Match and remit the prorated contributions for the initial payroll cycle. Remit the full contribution amount calculated in Step 4 in subsequent payroll cycles. | = $285.82 ÷ 10 × 5 =$142.91 |
* 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 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 (2024): $68,500
- Prior bi-weekly salary rate: $3,500
- Prior bi-weekly 2024 contribution amount required: $288.09
- 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: $68,500 ÷ 26** = $2,634.61 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note:Use the salary rate if it's lower than the YMPE. | $2,634.61 × 7.4% = $194.96 |
| 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). Note:This figure is zero if the salary rate is less than the YMPE. | ($3,850.00 − $2,634.61) × 10.5% = $127.61 |
| 4 | Add the amounts in Steps 2 and 3 and round the total to two decimal places. Result:This calculation represents the contribution per pay period, based on the new salary rate that should be deducted from the member's pensionable salary. | $194.96 + $127.61 = $322.57 |
| Calculate Arrears Contributions | ||
| 5 | Calculate the difference between the original bi-weekly contribution amount and the adjusted amount. Result:The additional contribution amount per bi-weekly period has been determined. | $322.57 (new contributions) − $288.09 (old contributions)= $34.48 |
| 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). | $34.48 × 5 = $172.40 |
| 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: $322.57 Arrears contributions (total): $172.40 Total: $494.97 |
* 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.
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 (2024): $68,500
- Salary per semi-monthly pay cycle: $3,250.00
| 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: $68,500 ÷ 24 = $2,854.17 |
| 2 | Multiply the pro-rated YMPE by 7.4% (contribution rate on salary up to YMPE). Note:Use the semi-monthly salary rate instead of the prorated YMPE, if the salary rate is less. | $2,854.17 × 7.4% = $211.21 |
| 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). Note:This figure is zero if the semi-monthly salary rate is less than the prorated YMPE. | ($3,250.00 − $2,854.17) × 10.5% = $41.56 |
| 4 | Add the amounts calculated in Steps 2 and 3 together and round the total to two decimal places. Result:Each pay cycle, this amount must be deducted from the member’s pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. | $211.21 + $41.56 = $252.77 |
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 (2024): $68,500
- 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'sfinalpayroll 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). Note:Use the converted semi-monthly salary rate if it's lower than the prorated YMPE. | $68,500 × 7.4% = $5,069.00 |
| 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). Note:This figure is zero if the annual salary rate is less than the YMPE. | ($95,000 − $68,500) × 10.5% = $2,782.50 |
| 3 | Add the figures calculated in Steps 1 and 2 to calculate the annual contribution amount. | $5,069.00 + 2,782.50 = $7,851.50 |
| 4 | Determine the daily contribution amount (i.e., divide the annual contribution figure by 365 days, or 366 days in leap years). | = $7,851.50 ÷ 365 days = $21.51 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). Result:Match and remit the prorated contributions for the initial payroll cycle. | $21.51 × 10 = $215.10 |
