In September 2017, the UBC Board of Governors approved an increase in the employer contribution to the SPP. The increase will be implemented in two stages – the first increase occurred on October 1, 2017 and the second increase will occur on October 1, 2018. The past, current and new contribution rates are shown below. The employee contribution rate remains unchanged at 6.5% of pensionable earnings. The employer contribution rates are as follows:
Before October 1, 2017: 8.2% of pensionable earnings (salary) on which Canada Pension Plan contributions are made, and 10.0% of the remainder of pensionable earnings
From October 1, 2017 to September 30, 2018: 9.13 % of pensionable earnings
From October 1, 2018 onward: 9.40% of pensionable earnings
The benefits provided by the SPP are not being changed. However, the increase in the level of contributions being made to the SPP enhances the security of the pension benefits. One of the objectives of the Pension Board is to ensure that the SPP is financially sustainable for the long-term. The increase in the employer contribution will assist the Pension Board in achieving this objective.