Effective January 1, 2024, the Canadian Revenue Agency (CRA) made changes to Canada Pension Plan (CPP) contributions. It is important to note that these adjustments do not impact contributions to your Public Service Pension Plan (PSPP).
While these changes have no impact to your PSPP contributions, to help you better understand, we’ve complied some information below:
As of January 1, 2024, CRA has added a “Year’s Additional Maximum Pensionable Earnings” (YAMPE) to the existing “Year’s Maximum Pensionable Earnings” (YMPE). The YAMPE is set at $73,200 and the YMPE is set at $68,500 (as of January 1, 2024).
This means, starting this year, those with income above the first earning ceiling (YMPE), will make additional CPP contributions on their earnings above this rate (which is currently set at $68,500), up to the second earnings ceiling (YAMPE which is currently set at $73,200).
Specific questions about these changes and how they might impact you, should be directed to the CRA. Additionally, you can find more information here.
To learn more about your PSPP contributions and how they are calculated visit Your Contributions.