2019 Maximum Earnings & Contributions

November 6th, 2018

The Income Tax Act limits how much pension an individual may earn in a given year and limits a person’s total pension contributions to 9% of their annual income.

 

For 2019, the maximum pensionable earnings are $165,628.00 and the maximum pension contributions allowed are $14,906.52.

 

Once the earnings reach $165,628.00, pension contributions to the Municipal Employees Pension Plan must be stopped.

 

Because the MEPP pension contribution rate is greater than 9% after a member reaches the Canada Pension Plan Maximum earnings ($57,400 in 2019), contributions must be adjusted as follows:

 

For members who participate in the Disability Income Plan, pension contributions must be deducted as follows:

 

$0 - $57,400.00 @ 8.3% = $4,764.20

$57,400.01 - $137,760.00 @ 9.5% = $7634.20

$137,760.01 - $165,628.00 @ 9% = $2,508.12

 

TOTAL MAXIMUM CONTRIBUTIONS = $14,906.52

 

 

For members who do NOT participate in the Disability Income Plan, pension contributions must be deducted as follows:

 

$0 - $57,400.00 @ 8.4% = $4,821.60

$57,400.01 - $114,800.00 @ 9.6% = $5,510.40

$114,800.01 - $165,628.00 @ 9% = $4,574.52

 

TOTAL MAXIMUM CONTRIBUTIONS = $14,906.52