In our November 2017 newsletter we announced that the UBC Board of Governors approved an increase in the employer contribution to the SPP. The increase in the employer contribution rate assists the SPP Board in achieving its objective to ensure the SPP is financially sustainable for the long-term. The increase was implemented in two steps with the first increase occurring on October 1, 2017 and the second increase occurring on October 1, 2018. 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 the 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
Did you know?
The money contributed to the SPP by UBC and plan members goes to fund the overall pension plan. Contributions are not used to determine your pension amount at retirement.