Retroactive Pay and Your Pension

The new 2023-2026 Provincial Collective Bargaining Agreement includes raises that will positively impact your pension. Teachers will receive a retroactive salary adjustment of four percent on September 1, 2023, and three percent on September 1, 2024. Retroactive earnings will be remitted to the STRP as a one-time lump sum payment once employers have time to make the adjustments.

For members who were active on September 1, 2023, and are still active, retroactive earnings will be pensionable in the year they are paid. Members will earn pension based on the retroactive earnings and will pay pension contributions of 10 percent on those earnings. Additional pension on retroactive earnings will be reflected in members’ annual statements for the year they are paid.

For members who were active on September 1, 2023, but who have since retired, terminated, or are on a leave on the date that the retroactive salary is paid, their earnings will not be pensionable. STRP pension contributions are not pensionable for any teacher not on payroll at the time the retroactive salary is paid. This includes teachers on leave. Therefore, these members will not have a pension contribution deducted from their retroactive earnings.