How pension contributions work
You contribute to your pension through automatic payroll deductions. Your employer also contributes to your pension.
What are the contributions?
Both you and your employer make contributions to BC's College Pension Plan.
Your contributions are automatically deducted from each paycheque. Your employer's contributions are paid directly to the plan. Both your contributions and your employer's contributions are based on a percentage of your salary:
- You contribute 10.24 per cent of your salary
- Your employer contributes 10.34 per cent of your salary
These rates also include a contribution amount of 1.85 per cent from both you and your employer that is transferred to the inflation adjustment account. This account is used to pay for annual cost-of-living adjustments (COLAs) that may be added to monthly pension benefits. COLAs are not guaranteed, but once granted, they become part of your basic pension benefit.
Contribution rates for Simon Fraser University (SFU) employees
If you are an SFU employee, you and SFU have unique contribution rates:
- You contribute 11.08 per cent of your salary
- SFU contributes 11.18 per cent of your salary
These SFU employer and employee rates include 2.05 per cent to the inflation adjustment account.
When you stop contributing to the plan
Once you start contributing to the plan, you'll remain an active plan member until you leave your job or retire.
If you are on long-term disability, you do not make contributions to the plan; however, you will continue to earn contributory and pensionable service as though you had continued to work.