Reminder: LAPP 2011 Contribution Rate Increase
December 30, 2010
(Originally posted September 6, 2010)
Effective January 1, 2011, contribution rates for members and employers of the Local Authorities Pension Plan (LAPP) will increase. This is the second year of phased-in incremental increases over a three-year period. For members, the contribution rate on pensionable salary up to the current Year's Maximum Pensionable Earnings (YMPE) will increase from 8.06 per cent to 8.49 per cent. The contribution rate on pensionable salary over the current YMPE will increase from 11.53 per cent to 12.13 per cent. For employers, the contribution rate on pensionable salary up to the YMPE will increase from 9.06 per cent to 9.49 per cent. The contribution rate on pensionable salary over the current YMPE will increase from 12.53 per cent to 13.13 per cent.
Contribution rates will experience a similar increase again in 2012. Contribution rates are divided between employees and employers, with employers paying one per cent more.
Contribution rate increase questions and answers.
