Calculating basic contributions
Overview
This section details how members' basic contributions are calculated and includes the following topics:
 Member contributions
 Contribution formula
 Limits and rates for calculating member contributions
 Employer and member contributions
 OPP contributions
 Retroactive salary increases
 OPB's online contribution calculator
 Contribution calculation scenarios
 Related topics
Member contributions
All members must contribute to the Plan from the Plan Membership Date until such time as the member
 terminates employment and PSPP membership, or
 takes an unpaid leave of absence without pay for more than 30 days AND elects not to contribute for the duration of the leave, or
 becomes eligible for LTIP benefits (at which time the Employer pays both the member and employer shares), or
 is divested out of the PSPP (and membership is suspended),
 commences early or normal retirement, or
 opts out of the PSPP, if membership is optional, or
 dies before retirement.
Membership after 65
The following members have the option of continuing to contribute to the Plan until November 30^{th}of the calendar year in which they reach age 71:
 They continue in active employment after the age of 65.
 They have retired, began pension payments, and then returned to work (i.e., reemployed pensioners who rejoin the PSPP).
Contribution formula
Member's regular contributions are calculated using the following formula:
7.4% of Annual Salary up to the YMPE + 10.5% of Annual Salary above the YMPE
Annual salary means the member's regular base salary. It does not include overtime pay, payments in lieu of benefits, or any other special payments.
YMPE  The Year's Maximum Pensionable Earnings (YMPE) is set by the federal government to determine how much Canadians contribute to the Canada Pension Plan (CPP). The YMPE is adjusted each year based on the average wage in Canada. For 2019, the YMPE is $57,400.
The member contributes:
 $7.40 for every $100 they earn up to the YMPE, plus
 $10.50 for every $100 they earn above the YMPE
Note: Employers must match all regular contributions that the member makes to the PSPP.
Limits and rates for calculating member contributions
For your convenience, we've provided the current and historical limits/rates that you will need to calculate member/employer contributions.
Current Canada Pension Plan YBE and YMPE rates
 2019 YBE (Year's Basic Earnings) is $3,500
 2019 YMPE (Year's Maximum Pensionable Earnings) is $57,400
Access historical YBE and YMPE figures and past PSPP contribution rates.
Employer and member contributions
The employer must pay the following contributions amounts into the PSPP Fund:
 all contributions deducted from the member's contributory earnings plus
 matching employer contributions plus
 contributions made by the employer on behalf of the members on LTIP.
OPP additional contributions
The following table summarizes the current employer and member contribution rates for Ontario Provincial Police (OPP) members.
Contribution Rates  Officers, Commissioned Officers, Deputy Commissioners & Commissioner  Civilians 

Basic Contributions Up to YMPE  8.2%  7.775% 
Basic Contributions Above YMPE.  11.3%  10.875% 
Additional Contributions For OPP 50/30 Early Retirement Provision 
1.5%  n/a 
Total Contributions Up to YMPE  9.7%  7.775% 
Total Contributions Above YMPE  12.8%  10.875% 
Important: The basic contribution rates for OPP officers and civilians are higher than the rates for regular members in order to fund additional retirement provisions available to them.
Retroactive salary increases
When a member receives retroactive salary increase payments, the Employer must recalculate the member's PSPP contributions using
 the new calculation, based on the revised salary, and
 the contribution rates in effect for the retroactive period.
Note: Please remember that a retroactive salary increase may also require you to amend the member's annual Pension Adjustment (PA).
Application of Retroactive Salary Increases:
We require retroactive contributions for retroactive salary increases for all members, even if the member:
 is on a leave
 is receiving LTIP benefits (if the change is prior to the beginning of the LTIP period), or
 has terminated, divested, died, or retired.
OPB's online contribution calculator
You can use OPB's online contribution calculator to determine the required contributions for a number of different scenarios. The calculator is located in OPB's employer portal
Links:
 OPB's employer portal
 Calculator instructions (Employer Portal Reference Manual)
Contribution calculation scenarios
The contribution rates for members and employers have been the same for a number of years. Therefore, the calculations used in the scenarios we've provided for you below can be used to determine both the member and employer portion of the basic contributions that must remitted each payroll cycle.
Use the links below to view the contribution calculations for the following scenarios:
Biweekly contribution calculation scenarios
 Scenario 1:
Calculating contributions for a regular, fulltime member effective April 2019  Scenario 2:
Calculating contributions for a regular, parttime member  Scenario 3:
Calculating contributions for an unclassified member  Scenario 4:
Calculating the initial contributions for a member who is enrolled midway through a payroll cycle  Scenario 5:
Calculating retroactive contributions for a member who receives a retroactive salary increase
Semimonthly contribution calculation scenarios
 Scenario 1:
Calculating contributions for a regular, fulltime member  Scenario 2:
Calculating the initial contributions for a regular, fulltime member who is enrolled midway through a payroll cycle
Related topics
Please refer to these related topics:
 Income Tax Act Rules (PDF), and
 Buybacks and Transfers for explanations of
Historical amounts
CPP: YBE and YMPE amounts from 2003 to 2019
Calendar Year  YBE  YMPE 

2003  $3,500  $39,900 
2004  $3,500  $40,500 
2005  $3,500  $41,100 
2006  $3,500  $42,100 
2007  $3,500  $43,700 
2008  $3,500  $44,900 
2009  $3,500  $46,300 
2010  $3,500  $47,200 
2011  $3,500  $48,300 
2012  $3,500  $50,100 
2013  $3,500  $51,100 
2014  $3,500  $52,500 
2015  $3,500  $53,600 
2016  $3,500  $54,900 
2017  $3,500  $55,300 
2018  $3,500  $55,900 
2019  $3,500  $57,400 
PSPP Contribution Rates from January 2003 to December 2019
Effective Date 
Employee Contributions  Employer Contributions  

Rate 1 up to YBE 
Rate 2 between YBE and YMPE 
Rate 3 above YMPE 
Rate 4 up to YBE 
Rate 5 between YBE and YMPE 
Rate 6 above YMPE 

Jan2003  8%  6.2%  8%  8%  6.2%  8% 
Mar2003  5%  3.2%  5%  8%  6.2%  8% 
Mar2004  8%  6.2%  8%  8%  6.2%  8% 
Jan2005  8%  6.2%  8%  8%  6.2%  8% 
Jan2006  8%  6.2%  8%  8%  6.2%  8% 
Jan2007  8%  6.2%  8%  8%  6.2%  8% 
Jan2008  8%  6.2%  8%  8%  6.2%  8% 
Effective Date 
Employee Contributions  Employer Contributions  

Rate 1 % of Annual Salary up to the YMPE 
Rate 2 % of Annual Salary above YMPE 
Rate 3 % of Annual Salary up to YMPE 
Rate 4 % of Annual Salary above the YMPE 

Jan2009  6.4%  8.75%  6.4%  8.75% 
Jan2010  6.4%  9.5%  6.4%  9.5% 
Jan2011  6.4%  9.5%  6.4%  9.5% 
Jan2012  6.4%  9.5%  6.4%  9.5% 
Jan2013  6.4%  9.5%  6.4%  9.5% 
Jan2014  6.4%  9.5%  6.4%  9.5% 
Jan2015  6.4%  9.5%  6.4%  9.5% 
Jan2016  6.4%  9.5%  6.4%  9.5% 
Jan2017  6.4%  9.5%  6.4%  9.5% 
Jan2018  6.4%  9.5%  6.4%  9.5% 
Apr2018  6.9%  10%  6.9%  10% 
Apr2019  7.4%  10.5%  7.4%  10.5% 
Biweekly contribution calculation scenarios
Use the following scenarios to calculate the member and employer portions of the contributions required for each biweekly payroll period.
Scenario 1: Calculating contributions for a regular, fulltime member effective April 2019
Calculate the basic PSPP pension contributions for the member and employer as follows:
 YMPE (2019): $57,400
 Salary per biweekly pay cycle: $3,000.00
Step  Action  Example for Employer on a biweekly pay cycle from April 2019 

1  Prorate the YMPE by the number of pay cycles in the calendar year.  Number of biweekly pay cycles: 26* Prorated YMPE: $57,400 / 26** = $2,207.69 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the biweekly salary rate instead of the prorated YMPE, if the salary rate is lower than the prorated biweekly YMPE. 
$2,207.69 x 7.4% = $163.37 
3  If the salary rate is higher than the prorated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the biweekly salary rate is less than the prorated YMPE. 
($3,000.00  $2,207.69) x 10.5% = $83.19 
4  Add the amounts calculated in Steps 2 and 3 together and then round the total to two decimal places. Result: Each pay cycle, this amount must be deducted from the member’s pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. 
$163.37 + $83.19 = $246.56 
* For this example, we used 26 pay cycles; Ministries prorate the YMPE using 26.08928.
** For Agencies, Boards and Commissions with 26 pay cycles (i.e., biweekly); every 11th year will be a 27pay year. When in a 27pay year the YMPE is to be prorated using 27 pays.
Scenario 2: Calculating contributions for a regular, parttime (RPT) member
Important: This scenario applies only to members who work on a regular parttime basis each payroll period. See Scenario 3 for direction on how to calculate contributions for a member employed on an unclassified basis (i.e., variable hours). Please remember that overtime is not pensionable and cannot be included in the calculation.
Calculate the basic PSPP pension contributions for the member and employer as follows:
 YMPE (2019): $57,400
 Regular parttime (RPT) ratio: 80%
 Biweekly salary rate for a member employed at the fulltime equivalent: $2,625.00
Step  Action  Example for Employer on a biweekly pay cycle from April 2019 

1  Prorate the YMPE by the number of pay cycles in the calendar year.  Number of biweekly pay cycles: 26* Fulltime equivalent salary per biweekly pay cycle: $2,625 Prorated YMPE: $57,400 / 26** = $2,207.69 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the fulltime biweekly salary rate instead of the prorated YMPE, if the fulltime biweekly rate is lower than prorated biweekly YMPE. 
$2,207.69 x 7.4% = $163.37 
3  If the salary rate of the fulltime equivalent is higher than the prorated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the fulltime equivalent biweekly salary rate of the fulltime equivalent is less than the prorated YMPE. 
($2,625.00  $2,207.69) x 10.5% = $43.82 
4  Add the amounts calculated in Steps 2 and 3 together to determine the required contributions for a fulltime member.  = $163.37 + $43.82 = $207.19 
5  Prorate the contribution amount for a fulltime member calculated in step 4 by the member's regular parttime ratio. Finally, round the resulting amount to two decimals places. Result: Each pay period, this amount must be deducted from the RPT member's pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. 
= $207.19 x 80% = $165.75 
* For this example, we used 26 pay cycles; Ministries prorate the YMPE using 26.08928.
** For Agencies, Boards and Commissions with 26 pay cycles (i.e., biweekly); every 11th year will be a 27pay year. When in a 27pay year the YMPE is to be prorated using 27 pays.
Scenario 3: Calculating contributions for an unclassified member
Important: This scenario applies only to members who work variable hours each payroll period. See Scenario 2 for direction on how to calculate contributions for a member employed a regular, parttime basis.
Calculate the basic PSPP pension contributions for the member and employer as follows:
 YMPE (2019): $57,400
 Member worked 60 hours during the payroll period. The standard biweekly hours are 72.5 hours
 Biweekly Salary Rate for a member employed at the fulltime equivalent: $2,400.00
Step  Action  Example for Employer on a biweekly pay cycle from April 2019 

1  Prorate the YMPE by the number of pay cycles in the calendar year.  Number of biweekly pay cycles: 26* Salary per biweekly pay cycle at the fulltime equivalent: $2,400 Prorated YMPE: $57,400 / 26** = $2,207.69 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the biweekly salary rate instead of the prorated YMPE, if the salary rate is lower than prorated biweekly YMPE. 
$2,207.69 x 7.4% = $163.37 
3  If the salary rate at the fulltime equivalent is higher than the prorated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the biweekly salary rate is less than the prorated YMPE. 
($2,400.00  $2,207.69) x 10.5% = $20.19 
4  Add the amounts calculated in Steps 3 and 4 together to determine the required contributions for a fulltime member.  = $163.37 + $20.19 = $183.56 
5  Prorate the contribution amount for a fulltime member calculated in step 4 by the number of hours the unclassified member actually worked. Finally, round the resulting amount to two decimals places. Result: Each pay period, this amount must be deducted from the unclassified member's pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. 
= $183.56 x 60 / 72.5 = $151.91 
* For this example, we used 26 pay cycles; Ministries prorate the YMPE using 26.08928.
** For Agencies, Boards and Commissions with 26 pay cycles (i.e., biweekly); every 11th year will be a 27pay year. When in a 27pay year the YMPE is to be prorated using 27 pays.
Scenario 4: Calculating the initial contributions for a member who is enrolled or terminated midway through a payroll cycle
Calculate the basic PSPP pension contributions for a regular fulltime member and employer as follows:
 YMPE (2019): $57,400
 Biweekly salary rate: $3,000.00
 Days worked in first pay period: 5 days
Note: You can also use the steps below to calculate the required contributions in the member's final payroll cycle if plan membership ends during a payroll cycle.
Step  Action  Example for Employer on a biweekly pay cycle from April 2019 

1  Prorate the YMPE by the number of pay cycles in the calendar year.  Number of biweekly pay cycles: 26* Salary per biweekly pay cycle: $3,000 Prorated YMPE: $57,400 / 26** = $2,207.69 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the biweekly salary rate instead of the prorated YMPE, if the salary rate is lower than prorated biweekly YMPE. 
$2,207.69 x 7.4% = $163.37 
3  If the salary rate is higher than the prorated YMPE, multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the biweekly salary rate is less than the prorated YMPE. 
($3,000.00  $2,207.69) x 10.5% = $83.19 
4  Add the amounts calculated in Steps 2 and 3 together to determine the contributions required if the member had been enrolled for a full pay cycle.  = $163.37 + $83.19 = $246.56 
5  Prorate the contributions calculated in Step 4 by the actual no. of days the member contributed, then round the prorated figure to two decimal places. Note: Each full pay period has 10 working days. Result: Match and remit the prorated contributions for the initial payroll cycle. Remit the full contribution amount calculated in Step 4 in subsequent payroll cycles. 
= $256.56 / 10 x 5 =$123.28 
* For this example, we used 26 pay cycles; Ministries prorate the YMPE using 26.08928.
** For Agencies, Boards and Commissions with 26 pay cycles (i.e., biweekly); every 11th year will be a 27pay year. When in a 27pay year the YMPE is to be prorated using 27 pays.
Scenario 5: Calculating retroactive contributions for a member who receives a retroactive salary increase
Calculate the basic PSPP pension contributions for a regular fulltime member and the employer in the initial payroll cycle as follows:
 YMPE (2019): $57,400
 Prior biweekly salary rate: $3,000
 Prior biweekly 2019 contribution amount required: $233.35
 New biweekly Salary Rate: $3,500.00
 Number of payroll cycles that passed where contributions should have been calculated using the new salary rate: 5
Step  Action  Example for Employer on a biweekly pay cycle from April 2019 

1  Prorate the YMPE using the number of cycles in a calendar year.  Number of biweekly pay cycles: 26* Salary per biweekly pay cycle: $3,500.00 Prorated YMPE: $57,400 / 26** = $2,207.69 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the salary rate if it's lower than the YMPE. 
$2,207.69 x 7.4% = $163.37 
3  If the member's new salary is higher than the prorated YMPE, then multiply the difference by 10.5% (contributions rate on salary above the YMPE). Note: This figure is zero if the salary rate is less than the YMPE. 
($3,500.00  $2,207.69) x 10.5% = $135.69 
4  Add the amounts in Steps 2 and 3 and round the total to two decimal places. Result: This calculation represents the contribution per pay period, based on the new salary rate that should be deducted from the member's pensionable salary. 
$163.37 + $135.69 = $299.06 
Calculate Arrears Contributions  
5  Calculate the difference between the original biweekly contribution amount and the adjusted amount. Result: The additional contribution amount per biweekly period has been determined. 
$299.06 (new contributions)  $233.35 (old contributions)= $65.71 
6  Calculate the total arrears owed by multiplying the retroactive contribution amount calculated in step 5 by the number of pay cycles where the adjusted contribution amount should have been deducted (i.e., 5 pay cycles).  $65.71 x 5 = $328.55 
7  Deduct the new contribution amount and the arrears from the member’s pensionable salary for the next pay cycle. All contributions are matched by the employer.  New biweekly contributions: $299.06 Arrears contributions (total): $328.55 Total: $627.61 
* For this example, we used 26 pay cycles; Ministries prorate the YMPE using 26.08928.
** For Agencies, Boards and Commissions with 26 pay cycles (i.e., biweekly); every 11th year will be a 27pay year. When in a 27pay year the YMPE is to be prorated using 27 pays.
Semimonthly contribution calculation scenarios
Use the following scenarios to calculate the member and employer portions of the contributions required for each semimonthly payroll period.
Scenario 1: Calculating contributions for a regular, fulltime member
Calculate the basic PSPP pension contributions for the member and employer as follows:
 YMPE (2019): $57,400
 Salary per semimonthly pay cycle: $2,500
Step  Action  Example for Employer on a semimonthly pay cycle from April 2019 

1  Prorate the YMPE by the number of pay cycles in the calendar year.  Number of semimonthly pay cycles: 24 Prorated YMPE: $57,400 / 24 = $2,391.67 
2  Multiply the prorated YMPE by 7.4% (contribution rate on salary up to YMPE). Note: Use the semimonthly salary rate instead of the prorated YMPE, if the salary rate is less. 
$2,391.67 x 7.4% = $176.98 
3  If the salary rate is higher than the prorated YMPE, then multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the semimonthly salary rate is less than the prorated YMPE. 
($2,500  $2,391.67) x 10.5% = $11.37 
4  Add the amounts calculated in Steps 2 and 3 together and round the total to two decimal places. Result: Each pay cycle, this amount must be deducted from the member’s pensionable salary, matched by the employer, and remitted to OPB until the member's salary rate changes. 
$176.98 + $11.37 = $188.35 
Scenario 2: Calculating contributions for a member who is enrolled midway through a payroll cycle
Calculate the basic PSPP pension contributions for a regular fulltime member and the employer in the initial payroll cycle as follows:
 YMPE (2019): $57,400
 Annual Salary Rate: $85,000
 Payroll period where enrolment occurred: September 1st to 15th
 Number of days enrolled in the PSPP: 10 (i.e., member enrolled on September 6th)
Note: You can also use the steps below to calculate contributions in the member's final payroll cycle if plan membership ends during a payroll cycle.
Step  Action  Example for Employer on a semimonthly pay cycle from April 2019 

1  Multiply the annual YMPE by 7.4% (contribution rate on salary up to the YMPE). Note: Use the converted semimonthly salary rate if it's lower than the prorated YMPE. 
$57,400 x 7.4% = $4,247.60 
2  If the member's annual salary is higher than the YMPE, multiply the difference by 10.5% (contribution rate on salary above the YMPE). Note: This figure is zero if the annual salary rate is less than the YMPE. 
($85,000  $57,400) x 10.5% = $2,898.00 
3  Add the figures calculated in Steps 1 and 2 to calculate the annual contribution amount.  $4,247.60 + 2,898.00 = $7,145.60 
4  Determine the daily contribution amount (i.e., divide the annual contribution figure by 365 days, or 366 days in leap years).  = $7,145.60 / 365 days = $19.58 per day 
5  Determine the contributions that must be remitted for the initial payroll cycle (i.e., multiply the figure calculated in step 4 by the number of calendar days the member was enrolled in the PSPP; e.g., 10 days). Result: Match and remit the prorated contributions for the initial payroll cycle. 
$19.58 x 10 = $195.80 