Does the employee have to contribute?
In consultation with the Employees, the Employer selects the pension plan to be utilised. The employee must contribute a maximum of 5% of their earnings up to the annual maximum contributions of $3000. Together, the employer and employee contributions must total at least 10% of earnings. Therefore, a self employed person must contribute 10% towards a plan.
It is the employer’s responsibility to deduct and submit the pension contributions to the selected pension plan. Earnings are defined to include wages, salary, leave pay, commissions, bonus (with exceptions) and gratuities. The maximum annual pensionable earnings subject to contributions is $60,000.
Last Updated: 2005-11-24