Using the PA and Contributions Calculator

Use the PA and Contributions Calculator to calculate Pension Adjustments and contributions for Members of the CAAT Pension Plan. The Calculator was created by the Plan for use by the College administrators. To report any problems with the program, please contact the Programmer and Network Analyst or call 416-673-9024.

What you need
Example of calculations
The Benefit Entitlement (BE) calculation formula
The Pension Adjustment (PA) calculation formula
Contribution Rates

What you need

The calculator requires that three values be input:

Year - defaults to the current year, but you can change it if you wish. The year must appear as four digits (YYYY)
Earnings - the Member's pensionable earnings for the period in question. Be as precise as possible. Do not use a comma in your number.
Service - the number of months of Pensionable Service that accrued for the period in question.

Example of calculations

Here is an example of a calculation using 2010 for the year, $42,712.15 for the pensionable earnings, and 12 months for Pensionable Service.
Example

Once you enter the information and click the Calculate button, the results (Contributions and Pension Adjustment) appear almost instantly.

To start a new calculation, click the Clear button to empty the screen.

The details of the calculation appear in a scroll box below the calculation results. To see all the details, you will have to scroll down using the scroll bar on the right hand side of the box. Here you will find a summary of the data you entered, the PA offset amount that was used ($600 or $1,000), the BE, YMPE, YBE and contribution rates, and the actual calculation.

You can print a copy of this information by clicking the Printable Calculation link underneath the scroll box.

The Benefit Entitlement (BE) calculation formula

1.3% of pensionable earnings up to the YMPE (Year's Maximum Pensionable Earnings)
plus
2% of pensionable earnings above the YMPE

The maximum BE for 2010 is $2,494.44.

The YMPE is the amount of earnings on which Canada Pension Plan contributions are made. It is calculated annually by the Canada Revenue Agency.

The YMPE amount for 2009 is $47,200.

The PA will be rounded to the nearest whole dollar amount. If the pensionable earnings are less than the Year's Basic Exemption (YBE), then the PA is 0. The YBE is the amount, also provided by the Canada Revenue Agency, of earnings on which Canada Pension Plan contributions are exempt.

For 2009, the YBE remains at $3,500.

The Pension Adjustment (PA) calculation formula

The PA is calculated according to this formula:

For calculations on or after January 1, 1997

PA = (9 x BE) - $600

For calculations before January 1, 1997

PA = (9 x BE) - $1,000

For service of less than 12 months, the PA is pro-rated.

Contribution rates

The calculation of contributions is specified in the CAAT Plan Text.

From January 1, 2010 - December 31, 2010, contributions are:

12.1% on earnings up to the YBE
10.3% on earnings between the YBE and the YMPE
12.1% on earnings above the YMPE

From January 1, 2009 - December 31, 2009, contributions are:

11.1% on earnings up to the YBE
9.3% on earnings between the YBE and the YMPE
11.1% on earnings above the YMPE

From January 1, 2008 - December 31, 2008, contributions were:

10.1% on earnings up to the YBE
8.3% on earnings between the YBE and the YMPE
10.1% on earnings above the YMPE

From January 1, 2004 - December 31, 2007, contributions were:

9.1% on earnings up to the YBE
7.3% on earnings between the YBE and the YMPE
9.1% on earnings above the YMPE

From July 1, 1992 to December 31, 2003, contributions were:

7.6% of earnings up to the YBE
5.8% on earnings between the YBE and the YMPE
7.6% on earnings above the YMPE

Before July 1, 1992 contributions were:

6% on earnings up to the YBE
4.2% on earnings between the YBE and the YMPE
6% on earnings above the YMPE

Back to Calculator

December 2009