TPP Contributions

Your TPP contributions are deducted from your pay each payday by your employer. 

How much do I contribute?

There are two rates of contribution for TPP members:

• 11.3% of pensionable earnings up to the year’s maximum pensionable earnings (YMPE), and
• 12.9% of pensionable earnings above the YMPE.
   

Your employer matches your contributions and pays the same amount to your Plan.

These contributions are invested to grow the pension fund, helping to pay for the pension benefits of its members. While contributions are important, your pension is based on your years of pensionable service and pensionable earnings, not the amount you contribute.

What is the YMPE?

The Year’s Maximum Pensionable Earnings (YMPE) is an important term to understand when it comes to calculating your pension. The YMPE: 

• Is used to determine the reduction to your pension at age 65.
• Is set annually by the federal government.
• Changes every January 1 to reflect increases in the average wage.

You are required to make contributions to the Plan, unless you meet one of the following exceptions:

• you have 35 or more years of pensionable service within the TPP.
• you are 71 years of age or older. This is the maximum age the Canada Revenue Agency (CRA) permits pension contributions to be made. Contributions must cease being made to the Plan at the end of November of the calendar year you turn age 71.
• A pensioner who has returned to work for a participating employer and is employed less than the maximum number of days, as stipulated by the Nova Scotia Teachers Union and the Minister of Finance.

Understanding your TPP Contributions