The PSPP is a contributory defined benefit (DB) plan. That means you’re required to make contributions throughout your working years to the Plan, and your employer matches those contributions. If you’re an OPP officer or civilian, we encourage you to read this page about how your pension is calculated; how your contributions work; and the importance of speaking with one of our Client Service Advisors, who are Certified Financial Planners® if you want to discuss things such as how life events can impact your pension, estate planning and more.

Contributions are deducted automatically from your pay each period. We have outlined the contribution rates that apply to OPP officers and civilians below:

Contributions

OPP officers

In 2018, your annual contributions are:

  • 9.7% of your annual salary below the year's maximum pensionable earnings (YMPE), plus 12.8% of your annual salary above the YMPE.

In other words, you contribute:

  • $9.70 for every $100 you earn below the YMPE, plus
  • $12.80 for every $100 you earn above the YMPE

These rates include the additional 2% of annual salary OPP officers and their employer each contributes to cover the cost of the 50/30 unreduced early retirement benefit. You are eligible for a 50/30 unreduced early retirement benefit if you’re 50 years old and you’re an OPP officer with at least 30 years of pension credit.

Note: contribution rates will change in April 2019. Please read the OPB News Special Edition for OPP officers & civilians (PDF) for more information.

OPP civilians

In 2018, your annual contributions are:

  • 7.275% of your annual salary below the year's maximum pensionable earnings (YMPE), plus 10.375% of your annual salary above the YMPE.

In other words, you contribute:

  • $7.28 for every $100 you earn below the YMPE, plus
  • $10.38 for every $100 you earn above the YMPE.

Note: contribution rates will change in April 2019. Please read the OPB News Special Edition for OPP officers & civilians (PDF) for more information.

Examples of how the contributions work

Nadir is a full-time OPP officer who has an annual salary of $80,000. For this example, we assume 2018 contribution rates with a YMPE of $55,900. Based on the contribution formula for OPP officers outlined above, Nadir will contribute beginning in April 2018:

9.7% X his annual salary up to the YMPE
plus
$5,422.30
12.8% of his annual salary above the YMPE $3,084.80
Total $8,507.10

Nadir is a full-time OPP civilian who has an annual salary of $65,000. For this example, we assume 2018 contribution rates with a YMPE of $55,900. Based on the contribution formula for OPP civilians outlined above, Nadir will make annual contributions beginning in April 2018:

7.275% x his annual salary up to the YMPE
plus
$4,066.73
10.375% of his annual salary above the YMPE $994.13
Total $5,010.86

Average annual salary

For OPP Officers: This is the average of your annual salary that includes your Provincial Responsibility Incentive for your highest 36 consecutive months of pensionable salary. (If you have less than 36 consecutive months of pensionable salary at retirement, the average will be based on your full period of membership.)

For OPP Officers: The average annual salary calculation is based on the average of the highest 36-consecutive months of pensionable salary as follows:

  • As of December 31, 2011, for OPP police officers in the OPPA Uniform bargaining group and Commissioned Officers below the rank of Deputy Commissioner who are members of the Commissioned Officers Association
  • As of January 1, 2013, for the Commissioner and Deputy Commissioners

For eligible OPP civilians: As of December 31, 2011, this is the average of your annual salary that includes your Special Pay Allowance for your highest 48 consecutive months of pensionable salary. (If you have less than 48 consecutive months of pensionable salary at retirement, the average will be based on your full period of membership.)

Eligible OPP civilian means a member in the OPP civilian bargaining unit, represented by the OPPA.

For both OPP officers and civilians, your average annual salary does not include any overtime pay, payments in lieu of benefits, or payments that are not part of your regular salary. However, if you transferred pension credit into the PSPP under a reciprocal transfer agreement, your prior period of membership in the other plan will be combined with your current period of PSPP membership to determine your average annual salary.

Average annual salary and the position you retire from

The number of months used to determine your average annual salary is based on your position when you terminate your membership in the PSPP.

  1. Moving from an OPP officer/Commissioned Officer position to an OPP civilian position or vice versa will change the way we calculate your average annual salary. So, for example, if you start in an OPP officer position but you are in an OPP civilian position when you terminate your membership in the PSPP, your average annual salary will be calculated as an OPP civilian on all your pension credit (i.e. highest 48-consecutive months of pensionable salary as opposed to highest-36 consecutive months of pensionable salary; where the member's last day of PSPP membership is on or after December 31, 2011).
  2. Moving from an OPP officer/Commissioned Officer or civilian position to a non-OPP position within the PSPP means that if you start in an OPP officer or civilian position, but are in a non-OPP position when you terminate your membership in the PSPP, your average annual salary for all your pension credit will be based on the average annual salary calculation applicable to non-OPP officer/civilian positions (i.e. highest 60-consecutive months of pensionable salary).

Pension credit is the total number of years and months that you (or your employer on your behalf ) have contributed to the PSPP. If you hold a regular part-time position, the pension credit you receive will be pro-rated, based on the regular full-time hours for your position. The pension credit used to calculate your pension will include any credit you've purchased or transferred into the PSPP from another plan.

Average YMPE is the average of the YMPE (Year's Maximum Pensionable Earnings) for your last 3 calendar years of PSPP membership. The YMPE is the earnings limit set by the Federal Government each year to determine the maximum CPP contributions and benefits.

Buying back past pension credit

The new average annual salary calculations for OPP officers and civilians will generally increase the cost of buying back eligible non-Ontario Public Service (OPS) credit and eligible OPS credit outside your 24-month window.

The method we use to cost a buyback incorporates the average annual salary in the calculation. The new average annual salary calculation for OPP officers and civilians will generally provide higher averages of annual salary, meaning credit purchased will increase the value of your pension by more than it would have under the highest 60-consecutive month calculation. It will cost more to purchase the credit under the new average annual salary changes since we will need more money to fund that benefit.

OPB's Buyback Calculator lets you create personal estimates to buy back pension credit based on your personal information from the comfort of your home. Login to e-services to use this calculator. 

Income Tax Act (ITA) Limits

The Income Tax Act (ITA) limits the amount of pension you can build in the PSPP each year. In 2018, you will reach this limit if your annual salary is approximately $166,000 a year or more.

The Public Service Supplementary Benefits Account pays any pension benefits you build above the ITA limit (subject to certain conditions). For more information, please refer to your Annual Pension Statement guide. Please note: Contributions above the ITA maximum contribution limit are not tax deductible.

Leaving the PSPP

The number of months used to determine your average annual salary in your benefit calculation when you terminate is based on your position when you terminate your membership in the PSPP.

  1. Moving from an OPP officer/Commissioned Officer* position to an OPP civilian position or vice versa will change the way we calculate your average annual salary. So, for example, if you start in an OPP officer position, but you are in an OPP civilian position when you terminate your membership in the PSPP, your average annual salary will be calculated as an OPP civilian on all your pension credit (i.e., highest 48-consecutive months of pensionable salary as opposed to highest-36 consecutive months of pensionable salary; where the member's last day of PSPP membership is on or after December 31, 2011).
  2. Moving from an OPP officer/Commissioned Officer* or civilian position to a non-OPP position within the PSPP means that if you start in an OPP officer or civilian position, but are in a non-OPP position when you terminate your membership in the PSPP, your average annual salary for all your pension credit will be based on the average annual salary calculation applicable to non-OPP officer/civilian positions (i.e., highest 60-consecutive months of pensionable salary).

*including Commissioner and Deputy Commissioner

Helpful resources

Your Annual Pension Statement includes the amount you contribute to the PSPP each year. Your statement is updated and mailed to you every spring.

Your statement is also available through our secure e-services. To register, click Login at the top right corner of this page. If you notice any information that is missing or outdated when reviewing your statement, we encourage you to update your personal information in your e-services account.

For more information about OPP pension contributions, options and timelines, check out Planning today for tomorrow for OPP officers & civilians (PDF).