Contributing to the Plan
How do contributions work?
The PSPP is a contributory defined benefit (DB) plan, which means that you and your employer contribute to the Plan to help fund your future pension benefit. On average, contributions fund only 20–25% of your pension; the other 75–80% is funded by investment returns. That means you and your employer fund about 20 to 25 cents of each pension dollar that PSPP retired members receive – that’s a pretty good return on your investment.
Contributions are automatically deducted from your pay each period and deposited directly into the Plan Fund to allow you to start building your pension credit.
OPB regularly reviews our contribution rates to ensure that they are sufficient to fund future pension benefits. In 2025, the Plan Sponsor, the Government of Ontario, approved a contribution rate increase which will take place over three phases: July 1, 2025, October 1, 2025, and April 1, 2026. To learn more about this decision, read our Special Edition OPB News.
How much do I contribute?
You contribute a certain percentage of your annual salary up to the year's maximum pensionable earnings (YMPE), with another percentage above the YMPE. The three phases of the contribution rate increase means that you will contribute:
| As of July 1, 2025 | As of October 1, 2025 | As of April 1, 2026 |
|---|---|---|
| 7.85% of your salary up to the YMPE($71,300) Plus 11.0% of your salary above the YMPE |
8.3% of your salary up to the YMPE($71,300) Plus 11.5% of your salary above the YMPE |
8.7% of your salary up to the YMPE* Plus 12.0% of your salary above the YMPE* *2026 YMPE TBC |
Once the contribution rate increase is fully phased in, you will contribute: 8.7% of your annual salary up to the YMPE, plus 12.0% of your annual salary above the YMPE.
In other words:
From July 1, 2025 to September 30, 2025, you will contribute $7.85 for every $100 you earn up to the YMPE, plus $10.50 for every $100 you earn above the YMPE.
Different contribution rates apply for OPP, IPCO Services, and officers and civilians employed by the OFNPA . Please read For OPP members page or the For IPCO and OFNPA members page for more information.
Contributions are tax deductible
Don’t forget – PSPP contributions are tax deductible up to the Income Tax Act limit. That means your contributions are helping provide you with guaranteed retirement income for life, while reducing your taxes today.
Key definitions
Your annual salary is your regular base salary. It excludes overtime pay, pay in lieu of benefits or payments that aren’t part of your regular annual salary.
The YMPE is a figure set by the federal government that determines benefits and contributions under the Canada Pension Plan (CPP). The YMPE is adjusted each year based on average wages. For 2025, the YMPE is $71,300.
Contribution rate comparison
Please see the below chart for a view of how OPB’s contribution rates remain comparable to the public sector plans in Ontario.
|
Plan |
Member Contribution Rate on Earnings Below YMPE |
Member Contribution Rate on Earnings Above YMPE |
|
PSPP Current |
7.4% |
10.5% |
|
PSPP New (Once rate increase is fully phased in as of April 1, 2026) |
8.7% |
12.0% |
|
OPTrust |
9.4% |
11.0% |
|
OMERS 1 |
9.0% |
14.6% |
|
OTPP |
10.4% |
12.0% |
|
CAAT (DB Prime) |
10.2% |
13.8% |
|
HOOPP |
6.9% |
9.2% |
1Effective January 1, 2027, rates will change to 8.6% below the YMPE and 15.7% above