The Canada Pension Plan (CPP) is gradually being enhanced over a seven-year period from 2019 to 2025, with its most recent change taking effect on January 1, 2024.
CPP incorporates an earnings ceiling called the year's maximum pensionable earnings (YMPE).
On January 1, 2024, CPP introduced a second earnings ceiling known as the year's additional maximum pensionable earnings (YAMPE). Employees who have income above the first earnings ceiling will contribute an additional percentage of their employment income above the first earnings ceiling up to the second earnings ceiling.
Will there be any impact on my pension under DBprime? What about DBplus?
No. The CPP changes will not impact your CAAT pension in any way.
If you are in DBprime:
- Your contributions (and your employer’s contributions on your behalf) will be based on the first earnings ceiling, the YMPE. You can learn more about your pension contributions here.
- Your pension will continue to be calculated using a formula based on the average YMPE, in other words, the first earnings ceiling.
If you are in DBplus:
- DBplus does not use the YMPE to determine contributions, or to calculate your pension.
Visit the Government of Canada’s website for more details about the recent enhancements to CPP here.