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RULE 1 |
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From January 1, 1966 to December 1999, the contributions required under the Public Service Superannuation Act (PSSA) were integrated with the contributions required under the Canada Pension Plan (CPP). The integrated PSSA contribution rates apply regardless of whether CPP contributions have actually been paid. That is, in cases where the employee has not made CPP contributions (e.g., LWOP), contributions required under the PSSA are still based on what would have been required had CPP contributions been made.
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RULE 2 |
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As per Bill C-78, effective January 1, 2000, the rate and formula for calculating contributions required under the PSSA has changed. The PSSA contribution rates are no longer tied to the CPP contribution rates.
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NOTE 1 |
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The CPP contributions are based on a calendar year i.e., from January to December and since the maximum salary for CPP purposes changes each year, the gross contributions also changes annually.
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PROCEDURE |
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The following procedure only applies to periods of elective service which occurred prior to January 1, 2000. |
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If the elective service starts and/or ends during a year, to find the amount of CPP contributions for the partial year you simply divide the gross yearly contributions for that year by 12 and multiply by the number of months of service in that year.
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NOTE 2 |
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See the table for the CPP yearly contributions from 1966 to 1999 in the Superannuation Administration Manual (SAM) Section 3.4.6.
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EXAMPLE |
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Elective service from 10-07-80 to 30-04-82 |
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CPP contributions for: |
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| 1980 - 6/12 x 212.40 |
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$106.20 |
| 1981 - (12 months) |
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239.40 |
| 1982 - 4/12 x 268.20 |
= |
89.40 |
| TOTAL |
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$435.00 |
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The amount of $435.00 would be subtracted from the gross amount of superannuation contributions that would be required for the period from 10-07-80 to 30-04-82 depending on the salary used in the calculation.
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