Contribution Rates
LAPP Contribution Rates
Members and employers make contributions to the pension plan; contribution rates are shared between members and employers with employers paying 1% more. These rates are adjusted periodically to help ensure sufficient assets are available to pay all benefits promised under the Local Authorities Pension Plan both today and in the future.
Effective January 1, 2012, contribution rates increased for members and employers. A small increase is also planned for 2013.
What are the contribution rates?
2012 |
2013 |
|
Members' Rate up to YMPE* |
8.91% |
9.43% |
Members' Rate over YMPE |
12.74% |
13.47% |
Employers' Rate up to YMPE |
9.91% |
10.43% |
Employers' Rate over YMPE |
13.74% |
14.47% |
*YMPE refers to the Year's Maximum Pensionable Earnings level determined by the Canada Pension Plan annually. In 2012, the YMPE is $50,100.00.
Every year the Board conducts an actuarial valuation of the plan to get an overall assessment of the plan's financial health and an accurate picture of its assets and liabilities. This ensures the earned benefits of the pension plan are secure by determining whether there are sufficient assets to cover obligations to pension holders.
Click here for the news item on the recent contribution rate increases.
What is the salary cap?
The salary cap is the maximum salary upon which a defined benefit can be based as set by the federal Income Tax Act.
The salary cap for LAPP for 2012 is $147,363.50
