Pension contribution rates to increase

It is official! You will be paying more into your pension plan as of July 1st, 2010.

From the TPP website under "whats new" (http://www.pensionsbc.ca):

(excerpts)

Teachers’ Pension Plan member and employer contribution rates will each increase by 1.04 per cent of salary starting July 1, 2010. The Teachers’ Pension Board of Trustees approved this contribution increase after receiving an independent actuarial valuation showing the plan had an unfunded liability for basic pension benefits of $291 million on December 31, 2008......

The primary reasons for the 2008 unfunded liability of $291 million are the assumption of conservative future investment returns, an expectation of a longer life span for our retirees, and salary increases for our members that were higher than previously expected.
....

The new contribution rates (as a percentage of salary):

Member 10.20% (below YMPE), 11.70% (above YMPE)

Employer 13.33 % (below (YMPE) 14.83 % (above YMPE)

* The YMPE is the Year’s Maximum Pensionable Earnings for the Canada Pension Plan. The YMPE for 2009 is $46,300.

Complete purchases of service before July 1, 2010 to save Purchase of service costs are based on salary and contribution rates. For more information about purchasing service, please see the plan’s website at tpp.pensionsbc.ca.