Your PSSP contributions are deducted each pay by your employer, who matches your contributions by contributing an equal amount to the Plan. These contributions are invested to grow the pension fund, helping to pay for the future pension benefits of its members.
Your pension is calculated using a formula based on your pensionable earnings and years of pensionable service, not on the amount you contribute.
Contribution rates
There are three contribution levels for members, as selected by your employer: Level 100%, Level 80%, and Level 60%.
| Pensionable Earnings up to the YMPE | Pensionable Earnings above the YMPE | |
| Level 100% | 8.4% | 10.9% |
| Level 80% | 6.72% | 8.72% |
| Level 60% | 5.04% | 6.54% |
Year’s Maximum Pensionable Earnings (YMPE):
- is set by the federal government and is used in determining the reduction to your pension at age 65.
- changes every January 1 to reflect increases in the average wage.
Age 71 is the latest age at which pension contributions are allowed under the Income Tax Act (ITA). Under the ITA, pension contributions must stop by November 30 of the year you turn 71, and your pension must begin no later than December 1 of that same year.
You may continue working for a PSSP employer, but you will be considered a retired member of the Plan.
How Your Pension Contributions Are Calculated: Examples Using the YMPE for 2026 ($74,600)
