For IPCO and OFNPA members
If you’re an officer or civilian of IPCO services and the OFNPA group, we encourage you to read this page to learn about your contributions to the Plan.
How do contributions work?
The PSPP is a contributory defined benefit (DB) plan. That means you’re required to make contributions to the Plan throughout your working years and your employer matches those contributions.
Contributions are automatically deducted from your pay each period and deposited directly into the Plan to allow you to start building your pension credit.
OPB regularly reviews our contribution rates to ensure that they are sufficient to fund future pension benefits. In 2025, the Plan Sponsor, the Government of Ontario, approved a contribution rate increase which will take place over three phases: July 1, 2025, October 1, 2025, and April 1, 2026.
Contributions
You contribute a certain percentage of your annual salary up to the year's maximum pensionable earnings (YMPE), with another percentage above the YMPE. The three phases of the contribution rate increase means that you will contribute:
Officers of IPCO services and the OFNPA group
| As of July 1, 2025 | As of October 1, 2025 | As of April 1, 2026 |
|---|---|---|
| 10% of your salary up to the YMPE($71,300) Plus 13.20% of your salary above the YMPE |
10.30% of your salary up to the YMPE($71,300) Plus 13.60% of your salary above the YMPE |
10.60% of your salary up to the YMPE* Plus 13.90% of your salary above the YMPE* *2026 YMPE TBC |
Civilians of IPCO services and the OFNPA group
| As of July 1, 2025 | As of October 1, 2025 | As of April 1, 2026 |
|---|---|---|
| 6.92% of your salary up to the YMPE($71,300) Plus 12.10% of your salary above the YMPE |
9.30% of your salary up to the YMPE($71,300) Plus 12.55% of your salary above the YMPE |
9.65% of your salary up to the YMPE* Plus 12.95% of your salary above the YMPE* *2026 YMPE TBC |
Contributions- For officers of IPCO services and the OFNPA group
Once the contribution rate increase is fully phased in, you will contribute: 10.60% of your annual salary up to the YMPE, plus 13.90% of your annual salary above the YMPE.
From July 1, 2025 to September 30, 2025, you will contribute:
- $10.00 for every $100 you earn below the YMPE
- $13.20 for every $100 you earn above the YMPE
Contributions- For civilians of IPCO services and the OFNPA group
Once the contribution rate increase is fully phased in, you will contribute: 9.65% of your annual salary up to the YMPE, plus 12.95% of your annual salary above the YMPE.
From July 1, 2025 to September 30, 2025, you will contribute:
- $8.92 for every $100 you earn below the YMPE
- $12.10 for every $100 you earn above the YMPE
For 2025, the YMPE is $71,300.
How your pension is calculated
As a member of the PSPP, you should understand how we calculate your pension. That's why we’ve outlined our full Plan formula below. Since our Plan contains an additional benefit for members who retire before age 65, you’ll notice that there are two formulas – one before age 65, which includes the early retirement bridge benefit, and one that shows the lifetime pension you’ll receive from age 65 (after your bridge benefit ends).
There are two key factors in determining how much pension you’ll receive – your average salary and years of service in the Plan.
If you retire before you reach age 65 (the normal retirement age), your pension will be calculated using the formula below.
Your PSPP basic pension (which includes bridge benefit) is payable up to age 65, when the bridge benefit ends.
| 2% of your average annual salary | × | Your pension credit | = | Your PSPP basic pension |
Example 1 – Normal retirement at age 65
Leonard is 65 years old with an average annual salary of $95,000. With 25 years of pension credit, here is how their pension would be calculated:
| Scenario | Calculation | Totals |
|---|---|---|
| Age: 65 Average annual salary: $110,000 Pension credit: 25 years Average YMPE: $68,800.00 |
2.0% multiplied by $110,000 multiplied by 25 years MINUS (0.7% multiplied by $68,800) multiplied by 25 years |
$55,000.00 $12,040.00 |
| Annual lifetime pension | $42,960.00 |
Canada Pension Plan (CPP) integration: Your basic pension includes the lifetime pension plus a bridge benefit. The bridge benefit is intended to supplement your income until age 65, when many people start collecting an unreduced CPP pension, but is available to all PSPP members regardless of whether they make CPP contributions.
Bridge benefit
| 0.7% of the average YMPE or your average annual salary, whichever is less | × | Your pension credit (to a maximum of 35 years) |
Your lifetime pension: Your lifetime pension is payable from age 65, when the bridge benefit ends.
| Your PSPP basic pension | − | Bridge benefit, which ends at age 65 | = | Your annual PSPP lifetime pension |
Example 2 - Early reduced pension at age 60
Jordan is 60 years old with an average annual salary of $110,000. With 15 years of pension credit, here is how their pension would be calculated, with and without the bridge benefit:
| Scenario | Calculation | Totals |
|---|---|---|
| Age: 60 Average annual salary: $110,000 Pension credit: 15 years Average YMPE: $68,800.00 |
Pension before age 65: 2.0% multiplied by $110,000 multiplied by 15 years MINUS early retirement reduction: 5% per year X retires 5 years early (age 60 to 65) X $28,500 |
$33,000.00 $8,250.00 |
| Annual pension payable before age 65 (When this member turns 65, the pension will be recalculated to reflect the adjustment for CPP integration and the early retirement reduction) |
$24,750.00 | |
| Pension before age 65: 2.0% multiplied by $110,000 multiplied by 15 years MINUS early retirement bridge benefit: (0.7% multiplied by $68,800.00) multiplied by x 15 years |
$33,000.00 $7,224.00 |
|
| Subtotal MINUS early retirement reduction: 5% per year X retires 5 years early (age 60 to 65) X $25,776.00 | $25,776.00 $6,444.00 |
|
| Annual pension payable after 65: $19,332.00 |
Below are definitions of some key words to help you understand how we calculate your pension.
What is an average annual salary?
It’s the average of your annual salary for your best five consecutive years of membership in the Plan and, in certain cases, previous pension plan membership. Average annual salary excludes overtime pay, payments in lieu of benefits or payments that aren’t part of your regular annual salary.
What is pension credit?
Pension credit is the number of years and months that you (or your employer on your behalf) contributed to the Plan. 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. Pension credit also includes any credit you've purchased or transferred into the PSPP from another pension plan.
What is the average YMPE?
The average of the year's maximum pensionable earnings (YMPE) in the year you stop being a PSPP member and the two previous years. The YMPE is the earnings limit set by the federal government each year to determine the maximum CPP contributions and benefits.
Contribution rate comparison
Please see the chart below for a view of how OPB’s contribution rates remain comparable to the public sector plans in Ontario.
|
Plan |
Member Contribution Rate on Earnings Below YMPE |
Member Contribution Rate on Earnings Above YMPE |
|
Officers of IPCO Services and OFNPA group (Current) |
7.4% |
10.5% |
|
Officers of IPCO Services and OFNPA group (New) (Once rate increase is fully phased in as of April 1, 2026) |
10.6% |
13.9% |
|
OMERS1 Uniform officers of municipal police services |
9.2% |
15.8% |
|
Civilian members of IPCO Services and OFNPA group (Current) |
7.4% |
10.5% |
|
Civilian members of IPCO Services and OFNPA group (New) (Once rate increase is fully phased in as of April 1, 2026) |
9.30% |
12.6% |
|
OMERS1 Civilian members of municipal police services |
9.2% |
15.8% |
1 Effective January 1, 2027, OMERS officer rates will change to 9.6% below the YMPE and 16.7% above, and OMERS civilian rates will change to 8.6% below the YMPE and 15.7% above