The Canada Pension Plan (CPP) is a federal government program that provides pensions and benefits when people retire, become disabled or die. The CPP started a program of enhancements in 2019 designed to increase retirement income for Canadians.
Between 2019 and 2023 CPP phased in higher contributions and benefits relative to the Year’s Maximum Pensionable Earnings (YMPE). The YMPE is the maximum salary on which you must contribute to the CPP. This amount is adjusted annually.
In 2024 CPP is introducing a new tier of earnings above the YMPE. The new limit is called the Year’s Additional Maximum Pensionable Earnings (YAMPE).
CPP and your Civil Service Superannuation Fund (CSSF) contributions
The CSSF uses a two-part formula connected to the CPP to calculate your contributions to the Fund. Contributions are lower on earnings up to the YMPE, and higher on earnings above it.
While CPP enhancements will increase contributions to, and benefits payable from CPP, they won’t affect your contribution rates to your CSSF pension. Under CSSF plan terms, we don’t use the YAMPE as part of the formula that determines your contribution rates.
CPP and your Civil Service Superannuation Fund (CSSF) benefits
The CPP enhancements won’t affect your CSSF pension benefit. Under CSSF plan terms, we don’t use the YAMPE as part of the formula that determines your annual pension.
If you previously chose a pension integration option at retirement, nothing changes.
If you are considering choosing to integrate your pension benefit with CPP at retirement, our calculation of the CPP amount that can be advanced only considers the YMPE. Contact Service Canada in advance to learn more about your future CPP benefits.