Pension e-news - LAPP Special
July 28, 2015
LAPP Employers - 2016 Contribution Rate Advisory
The LAPP Board advises LAPP employers that there will be no contribution rate increase in 2016 and none is currently proposed for 2017, based on expectations of how economic and demographic factors will impact the Plan over the next two years.
The Board's practice is to set rates far enough in advance to allow employers and members time to budget. As such, there is some small possibility that 2017 rates might need to be modified in a future valuation if the funded position of the Plan varies significantly from what is currently projected. However, that does not appear to be an issue today.
We would appreciate you also sharing this information with your LAPP members either directly by email, or indirectly in an internal newsletter or in an intranet posting.
Contribution Rates The rates for 2015 (current rates) along with the proposed rates for 2016 and 2017 are as follows:
- Members' Rate up to YMPE* (2015 - 10.39%), (2016 - 10.39%), (2017 - 10.39%)
- Members' Rate over YMPE* (2015 - 14.84%), (2016 - 14.84%), (2017 - 14.84%)
- Employers' Rate up to YMPE* (2015 - 11.39%), (2016 - 11.39%), (2017 - 11.39%)
- Employers' Rate over YMPE* (2015 - 15.84%), (2016 - 15.84%), (2017 - 15.84%)
* YMPE refers to the Year's Maximum Pensionable Earnings level determined by the Canada Pension Plan annually. In 2015, the YMPE is $53,600. Read more about contribution rates on the LAPP website. The decision is part of the Board's unanimous approval of its 2014 valuation, which will be posted to the website as soon as the document is completed by the actuary.