The TPP (the Plan) is a Defined Benefit Pension Plan that provides you with a lifetime of monthly payments upon retirement. This will be a valuable financial asset when you are ready to retire.
You are automatically enrolled in the Plan when you become contractually or permanently employed as a teacher. You contribute to the Plan through regular payroll deductions, which are matched by your employer. Contributions to the Plan are mandatory for all teachers who are contract or permanent employees.
The Plan uses a formula to determine how much pension you will receive when you retire. The following components are used to calculate your TPP benefit:
- your average salary at date of termination;
- your total pensionable service at date of termination; and
- the rate at which your pension grows (ie. accrual rate) with each year of service
You contribute a percentage of your bi-weekly earnings to the Plan and that amount is matched by your employer each pay period.
The percentage of contributions for is currently 8.30% of pensionable earnings up to the Year's Maximum Pensionable Earnings (YMPE) and 10.00% of pensionable earnings in excess of the YMPE.
The YMPE is an amount determined each year by the Canada Pension Plan. The YMPE for 2022 is $64,900.
Your bi-weekly contributions are listed on your pay advice, or Insite Portal, under 'Before-Tax Deductions.' If you are permanent and you do not see a TPP contribution under this heading you should contact your payroll office immediately.
Your TPP pension grows with your pensionable service. To keep you informed of this growth, an annual Pension Statement is mailed to your home each summer that lists your annual and total contributions. As such, it is important to keep the Pensions & Benefits office informed of any address changes.
While it is important to know how much you contribute to the Plan, your pension will be determined by your years of service and your average salary.
Did you contribute to a defined benefit pension plan with a previous employer? If so, you may be eligible to transfer those funds into the TPP.
The TPP has a number of transfer agreements with similar pension plans across the country that allow you to consolidate your pension service and contributions into a single plan.
The following pension plans currently have Reciprocal Transfer Agreements with the TPP:
Prince Edward Island Public Sector Pension Plan
Provincial Teachers’ Pension Plans for all provinces including:
Alberta Teachers' Retirement Fund
British Columbia Pension Corporation
Manitoba Teachers' Retirement Allowances Fund
New Brunswick Teachers' Pension Plan
Newfoundland Teachers' Pension Plan
Nova Scotia Pension Services Group
Ontario Teachers' Pension Plan Board
Quebec Pension Commission
Saskatchewan Teachers' Superannuation Commission
If your past employer is not listed, you may be eligible for a transfer under the TPP's Standard One-Off Transfer Agreement.