Calculating Component 2

In order to perform the calculation, we first need to know Lindsay’s annualized earnings for each year she was a member of the Plan, the amount of the contributory service she had in each year, and the Year’s Maximum Pensionable Earnings. The YMPE can be found by visiting www.canada.ca.

School Year YMPE Earnings Contributory Service
2015/16 $54,900 $84,300 1.00
2016/17 $55,300 $85,900 1.00
2017/18 $55,900 $85,900 1.00
2018/19 $57,400 $86,800 1.00
2019/20 $58,700 $86,800 1.00

To determine Lindsay's earned pension after June 30, 2015, we calculate the pension she earned in each individual year and add those amounts together.

School Year Pension Calculation Pension Earned
2015/16 [1.3% x $54,900
+ 2.0% x ($84,300 - $54,900)]
x 1
$1,302
2016/17 [1.3% x $55,300  
+ 2.0% x ($85,900 - $55,300)]
x 1
$1,331
2017/18 [1.3% x $55,900
+ 2.0% x ($85,900 - $55,900)]
x 1
$1,327
2018/19 [1.3% x $57,400
+ 2.0% x ($86,800 - $57,400)]
x 1
$1,334
2019/20 [1.3% x $58,700
+ 2.0% x ($86,800 - $58,700)]
x 1
$1,325
Total $6,619/yr or $552/mo