January 2023 reduction in PSPP contribution amounts

Good news for NASA members who belong to the Public Service Pension Plan (PSPP)! Starting on January 1, 2023, your PSPP contribution amounts will again be reduced, leaving you with more money on your paycheque!

Starting in the new year, members will see a minimum contribution reduction of 1.3%, meaning a NASA member who makes $60,000 annually can expect to have just under $800 in additional take-home pay through the year. The table below compares contribution rates for 2022 and the new rates for 2023.

Comparison of PSPP contributions in 2022 (9.6% below YMPE, 13.7% above YMPE) and 2023 (8.3% below YMPE, 11.9% above YMPE)

* The Year’s Maximum Pensionable Earnings (YMPE) is the maximum amount of earnings on which you can contribute to the Canada Pension Plan, as determined by the federal government. PSPP uses the YMPE to determine contribution rates, plan benefits, and the cost of service. The 2022 YMPE is $64,900.

The benefits you will be entitled to receive at retirement will not change. The reduction in contribution rates is due to the healthy state of your plan resulting from the high rate of contributions plan members have paid over the last decade and the positioning of the PSPP to weather the changes and decline in the market.

This reduction also reinforces the importance of joint governance of public sector pension plans, which ensures that pension plan boards have worker representation to push for changes that will benefit the people who contribute to the plan. The long-standing demand for worker voice on pension boards was realized in March 2019 when the Joint Governance of Public Sector Pension Plans Act (2019) came into effect and instituted joint governance of public-sector pension plans.

NASA and your representatives on the plan boards will continue to advocate for continued worker voice in managing your pension and defend the retirement security offered to members through belonging to a defined benefit pension plan.