2015 Contribution Rates for Normal Retirement Age 60 (police and firefighters)

February 09, 2015
On June 25, 2014, the OMERS Sponsors Corporation, which sets contribution rates and benefits for the OMERS Primary Pension Plan (OMERS Plan), approved a change to contribution rates for police and firefighters (members with a normal retirement age of 60) effective January 1, 2015.

The newly approved contribution rates result in a 0.1 percentage point reduction in the normal retirement age 60 rates and fully reflect the contribution rate allocation methodology approved in 2012. The rate change does not affect contribution rates of normal retirement age 65 members (most members).

OMERS Plan contribution rates for normal retirement age 60 members

2015 rates are effective with the first full pay in 2015
 
  2015 2014
On earnings up to CPP earnings limit 9.2% 9.3%
On earnings over CPP earnings limit 15.8% 15.9%
The CPP earnings limit in 2014 is $52,500; the limit in 2015 will be higher.

Example

If you have a normal retirement age of 60 and earn $90,000, your contributions will decrease by $90 annually. Your employer’s contributions would also decrease by $90 per year.

Background

In 2012, the Sponsors Corporation approved a methodology for allocating the overall contributions into the four rates (for each normal retirement age and for earnings above and below the CPP earnings limit). The method strikes a balance for different member groups among the various contribution rate setting principles. As part of the approach, the Sponsors Corporation approved interim contribution rates with a commitment to fully implement the new methodology by January 1, 2015.