Contribution Reduction reminder
Effective: December 1, 2002
Payroll reminder: November 30, 2002 is the last day of the contribution reduction for members of the Public Service Pension Plan.
We would like to remind payroll personnel that contributions must return to the normal rate of 8%* as of December 1, 2002. Thank you for your assistance!
*Since April 1, 2002, OPP officers also resumed contributing an extra 2% of their salary towards the OPP 50/30 early retirement program.
Employers who couldn't effect this change as of August 1, 2000 were sent a letter in November to confirm the paydate when the 8% contribution rate will resume.
Other member reminders: In November, we're placing an article in Topical and mailing a final reminder to all members.
Topical article - November 15 issue
PSPP Members - the contribution reduction is ending
Don't forget - November 30 is the last day of the contribution reduction. Since August 1, 2000, members of the Public Service Pension Plan have enjoyed a 4% decrease in their contributions. But as of December 1, 2002, PSPP contributions must return to the normal rate.
Because contributions are calculated as a percentage of their salary, this is also to remind PSPP members that they will notice a change in their take-home pay.
How are contributions calculated? You contribute 6.2% on the part of your salary you pay CPP contributions on (in 2002, this is your salary from $3,500 to $39,100), and 8% on the rest. Ontario Provincial Police officers contribute an extra 2% towards the OPP 50/30 early retirement program.
For more information about PSPP contributions, visit www.opb.ca or call the Ontario Pension Board at 416-364-5035 or (toll-free) 1-800-668-6203.
Mailing - November 21
The contribution reduction - All good things must come to an end...
Some time next month, you will notice an increase in the amount of contributions being deducted from your paycheque for the Public Service Pension Plan.
This is because, as of December 1, 2002, contributions must return to the normal rate. (From August 1, 2000 to November 30, 2002 the rate was reduced by 4%.) The date of the first paycheque to reflect the change will depend on your employer's pay schedule.