Visit the Local Authorities Pension Plan website for current information.
2017 Contribution Rate Advisory
October 3, 2016
The LAPP Board advises LAPP members and employers that there will be no contribution rate increase for 2017 and none is currently proposed for 2018, based on expectations of how economic and demographic factors will impact the Plan over the next two years. The decision is part of the Board’s unanimous approval of its 2015 valuation, which will be posted to the LAPP website as soon as the document is completed by the actuary.
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 2018 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.
The rates for 2016 (current rates) along with the proposed rates for 2017 and 2018 are as follows:
LAPP Contribution Rates 2016 2017 2018
Members’ Rate up to YMPE* 10.39% 10.39% 10.39%
Members’ Rate over YMPE* 14.84% 14.84% 14.84%
Employers’ Rate up to YMPE* 11.39% 11.39% 11.39%
Employers’ Rate over YMPE* 15.84% 15.84% 15.84%
*YMPE refers to the Year’s Maximum Pensionable Earnings level determined by the Canada Pension Plan annually. In 2016, the YMPE is $54,900. The YMPE in 2017 is $55,300.