In September, 2017, the UBC Board of Governors approved an increase in the employer contribution to the Staff Pension Plan. The increase will be implemented in two stages – the first increase occurred on Oct. 1, 2017, and the second increase will occur on Oct. 1, 2018. The past, current and new contribution rates are shown below. The employee contribution rate remains unchanged at 6.5% of pensionable earnings. The employer contribution rates are as follows:
- Before Oct. 1, 2017: 8.2% of pensionable earnings (salary) on which Canada Pension Plan contributions are made, and 10.0% of the remainder of pensionable earnings
- From Oct. 1, 2017, to Sept. 30, 2018: 9.13 % of pensionable earnings
- From Oct. 1, 2018, onward: 9.40% of pensionable earnings
The benefits provided by the SPP are not being changed. However, the increase in the level of contributions being made to the SPP enhances the security of the pension benefits. One of the objectives of the Pension Board is to ensure that the SPP is financially sustainable for the long-term. The increase in the employer contribution will assist the Pension Board in achieving this objective.
For more information about the Staff Pension Plan, visit http://staff.pensions.ubc.ca.