Members will contribute an additional 1.1% of their salary to the Teachers' pension plan by 2014. The increase is being phased in over three years, with members contributing 0.4% more in 2012 and 0.35% more in each of 2013 and 2014. All rate increases go into effect Jan. 1.
The rate increases addressed a $17.1 billion funding shortfall in the pension plan as of January 2011. The shortfall developed largely because pension plan costs increased faster than plan assets, despite good returns on plan investments.
The Ontario government and designated employers will continue to match total member contributions at the new, higher rates.
Check your pay stubs each January to see how the increases will affect you or consult the chart below.
Contribution rates (as a percentage of your annual salary)
| Year | Teachers | Ontario government/ designated employers** |
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| Up to CPP limit* | Above CPP limit* | Increase | Up to CPP limit* | Above CPP limit* | Increase | |||
| 2011 | 10.4% | 12.0% | n/a | 10.4% | 12.0% | n/a | ||
| 2012 | 10.8% | 12.4% | 0.4% | 10.8% | 12.4% | 0.4% | ||
| 2013 | 11.15% | 12.75% | 0.35% | 11.15% | 12.75% | 0.35% | ||
| 2014 | 11.5% | 13.1% | 0.35% | 11.5% | 13.1% | 0.35% | ||
| Total | -- | -- | 1.1% | -- | -- | 1.1% | ||
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* The Canada Pension Plan (CPP) limit is the maximum earnings on which CPP contributions and benefits are based. The limit, which changes annually, is $50,100 in 2012. ** Designated employers include private schools and other organizations, such as the OTF, that participate in the pension plan. |
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For more details, read:
Contribution Rates - 2012
Contributions Q&As