Pension Contribution Rate Increase

June 13th, 2012

Effective with your first pay cheque dated July, 2012, the contribution rates to the Pension Plan have increased by 1% as follows:

If you belong to the Disability Income Plan, the rate will be:

7.3% up to the CPP maximum ($50,100 in 2012) and 8.5% on earnings above the CPP maximum.

If you do NOT participate in the Disability Income Plan, the rate will be:

7.4% up to the CPP maximum ($50,100 in 2012) and 8.6% on earnings above the CPP maximum.

The employer matches the employee contributions.

The contribution rate increase is required because the most recent actuarial valuation of the Pension Plan revealed that the Plan is 97.5% funded and has a going-concern deficiency of $11,767,000, which must be amortized over 15 years.