How pension contributions work
You contribute to your plan through automatic payroll deductions, and WorkSafeBC also contributes to your pension.
How much does WorkSafeBC contribute?
In addition to your member contributions, WorkSafeBC also contributes to your pension.
The employer contribution rates are:
- 6.5% of your salary up to and including the year's maximum pensionable earnings (YMPE)
- 8.0% of your salary above the YMPE
For example, in 2016, the YMPE was $54,900. If your annual salary was $60,000, WorkSafeBC would have contributed $3,976.50 to your pension in 2016. This is calculated as follows:
6.5% x $54,900 = $3,568.50
8.0% x ($60,000-$54,900) = $408.00
WorkSafeBC makes a contribution equivalent to one per cent of your salary to a fund called the inflation adjustment account (IAA) to help offset the effects of inflation.
This means your pension payments may include cost-of-living adjustments (COLAs) if sufficient funds are available in the IAA; however, COLAs are not guaranteed.