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Calculating Your Contributions

We use a two-tiered formula to calculate how much you contribute to your pension. It's divided between your annual salary up to the Canada Pension Plan (CPP) contributions and benefits limit, and your salary above the CPP limit.

For example, in 2021 you contribute:

  • 10.4% of your annual salary up to the CPP limit, plus
  • 12.0% of any salary above the CPP limit.

The CPP limit, which changes annually, is $61,600 in 2021.

Contributions are matched by the Ontario government and participating employers on behalf of all members.

How Ontario Teachers' and CPP work together

Contributions to Ontario Teachers' are lower on earnings up to the CPP limit and higher on earnings above it. We provide a bridge benefit, which is intended to supplement your retirement income until age 65 when you're eligible for an unreduced CPP pension. The month after you turn 65, or immediately if you start a CPP disability pension, the bridge benefit ends and your pension payment is adjusted.

Examples

If you're a teacher earning a salary of $78,000, you'll pay $8,374.40 in pension contributions in 2021.

Formula Contribution Amount

10.4% × $61,600 =

12.0% × $16,400 =
($78,000 − $61,600 = $16,400)

$6,406.40

$1,968.00

Total: $8,374.40

If you're a teacher earning a salary of $65,000, you'll pay $6,814.40 in pension contributions in 2021. Almost all of your contributions will be made at the lower contribution rate.

Formula Contribution Amount

10.4% × $61,600 =

12.0% × $3,400 =
($65,000 − $61,600 = $3,400)

$6,406.40

$408.00

Total: $6,814.40