As an employer, how much must I contribute?
At the minimum, an employer must contribute 5% of an employee’s earnings, up to the annual maximum pensionable earnings of $60,000. Self-employed persons must contribute a minimum of 10% of their pensionable earnings to a registered pension plan.
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 pensionable earnings of $60,000. Together, the employer and employee contributions must total at least 10% of pensionable earnings.
It is the employer’s responsibility to deduct and submit the pension contributions to the selected pension plan.
Pensionable earnings are defined to include wages, salary, leave pay, commissions, bonus (with exceptions) and gratuities.
When are the contributions due and payable?
Both the employer and employee contributions must be paid by the 15th of the month immediately following the month to which the contributions pertain. For example, any contributions deducted and collected in April must be paid by May 15.
Late payments are subject to interest which is calculated at the C.I. Prime Rate plus 5% (enshrined in the law). This interest calculation begins the day after the contributions are due, in our example that would be May 16.
In addition, if the Superintendent has directed an employer to pay arrears within two weeks and if they fail to comply, the employer may be liable to a fine of $500 for each day that the contributions are in arrears.
Last Updated: 2005-11-24