Mishall RehmanCanadian Armed Forces (CAF) members will see a slight decrease in their monthly contributions to the CAF Pension Plan, according to a CANFORGEN 176/22 released in December.
According to the CAF announcement, in 2023, Regular Force members and Reserve Force members will pay 9.35 per cent up to the Canada Pension Plan/Quebec Pension Plan (QPP) maximum and 12.37 per cent on earnings above this maximum.
Effectively, this is a .01 percentage points and a decrease of .11 percentage points, respectively.
“As an example, a member earning 80,000 dollars will pay 9.35 per cent on the first 66,000 dollars of earnings and 12.37 per cent on the remaining 13,400 dollars of earnings. This member would see an average monthly decrease of 6 dollars and 24 cents in contributions as compared to contributions made in 2022,” stated the CANFORGEN.
The new rates will go into effect on Jan. 15, 2023. It will not affect contributions to the Reserve Force Pension Plan rates, which will remain at 5.2 per cent of pensionable earnings.
For more information about the CAF Pension Plan and the new rates, visit here.
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