Contributions to the Plan are based on a formula that takes into account CPP contributions. Under the Plan’s normal formula, your OPTrust contributions equal:
6.4% of your salary up to the YMPE
plus
8% of your salary above the YMP
Example: OPTrust and CPP contributions
Let’s look at how OPTrust and CPP contributions are calculated for a typical employee.
Susan earns an annual salary of $46,900. Based on a YBE of $3,500 and a YMPE of $41,100, and the CPP contribution rate
of 4.95%, Susan would contribute as follows:
| 1) Susan’s OPTrust contributions | |
| 6.4% times salary up to the YMPE | |
| (0.064 x $41,100) | $2,630 |
| plus8% times salary above the YMPE | |
| (0.08 x [$46,900 - $41,100]) | |
| or (0.08 x $5,800) | $464 |
| Total OPTrust contributions | $3,094 |
| 2) Susan’s CPP contributions | |
| 4.95% times salary between the YBE and YMPE | |
| (0.0495 x [$41,100 - $3,500]) | |
| or (0.0495 x $37,600) $1,861 | |
| Total CPP contributions | $1,861 |
| 3) Susan’s combined contributions: OPTrust plus CPP | |
| OPTrust contributions | $3,094 |
| plusCPP contributions | $1,861 |
| Total combined contributions | $4,955 |