Contributions

Teacher Required Contributions

Members of the STRP contribute to the Plan by payroll deduction until retirement or termination of employment.

Contribution rates are lower on earnings up to the YMPE and higher on earnings above the YMPE. The YMPE is the year’s maximum pensionable earnings set annually by the federal government to determine Canada Pension Plan contributions and benefits. The YMPE for 2018 is $55,900.

Effective Date

Percentage of Earnings
Up to the YMPE

Percentage of Earnings
Above the YMPE

July 1, 2016

11.3%

13.5%

July 1, 2018

9.5%

11.7%

Teachers who do not contribute to the Canada Pension Plan contribute to the STRP at the rate stated for earnings above the YMPE.

Teacher contribution rates are based on regularly scheduled actuarial funding valuations performed by an independent actuary, and are subject to the approval of the Council of the Federation on the recommendation of the STF Executive.

Government Contributions

Government contributions to the STRP are negotiated through the provincial collective bargaining process.

The following government contribution rates are in effect:

Effective Date

Percentage of Earnings
Up to the YMPE

Percentage of Earnings
Above the YMPE

July 1, 2016

7.25%

9.25%

The government contribution rate for teachers who do not contribute to the Canada Pension Plan is the rate applicable to earnings above the YMPE.

50 Percent Excess Test

At retirement, termination or death, if your teacher contributions* and interest exceed 50 percent of the lump sum value of your annual pension, the excess shall be refunded to you. 

Money and service transferred to the STRP from another pension plan are not included in the 50 percent excess test.

* Contributions and interest are adjusted for any unmatched teacher contributions and interest before the excess test is performed.