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1 |
PURPOSE |
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1.1 |
The purpose of this Bulletin is to advise you of a change to the PSSA contribution rate, as a result of changes to the Canada Pension Plan (CPP) effective January 1, 1997. |
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2 |
POLICY |
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2.1 |
Legislation required to implement changes to the CPP is expected to be passed shortly. Effective from January 1, 1997, the CPP contribution rate will increase from 2.925 % to 3 %. |
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2.2 |
The contributions required under the PSSA will have to reflect this new rate retroactive to January 1, 1997. |
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2.3 |
The revised PSSA contribution rate for 1997 will be as follows: i) 7.5 % on salaries up to the CPP exemption of $3,500.00; ii) 7.5 % less 3 % on salaries from $3,500.01 to $35,800.00; iii) 7.5 % on salaries above $35,800.00. |
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3 |
PROCEDURES |
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3.1 |
For clients serviced by the Regional Pay System (RPS), the adjustment of PSSA contributions will be calculated automatically. |
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3.2 |
It will be the responsibility of clients not serviced by the RPS to calculate any refund of PSSA contributions due to the change in the CPP contribution rate. |
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3.3 |
Clients not serviced by the RPS may refer to the 1997-98 edition of the Revenue Canada publication entitled "Employers' Guide to Payroll Deductions" for additional information regarding the adjustment of CPP premiums. |
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4 |
INQUIRIES |
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4.1 |
Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office. |
