October 24, 2023
The LAPP Sponsor Board voted unanimously to maintain contribution rates for employers and members on pensionable earnings up to the Year's Maximum Pensionable Earnings (YMPE) and reduce contribution rates on pensionable earnings above the YMPE, bringing contribution rates into alignment with how LAPP benefits accrue.
The contribution rates effective January 1, 2024, are as follows:
|Contribution Rates for 2023||Contribution Rates for 2024|
|Member rate on pensionable salary
up to the YMPE*
|Member rate on portion of pensionable salary over the YMPE||11.23%||10.65%|
|Employer rate on pensionable salary
up to the YMPE
|Employer rate on portion of pensionable
salary over the YMPE
*The YMPE is set at $66,600 for 2023. The 2024 YMPE is not yet known; LAPP Corporation will update employers when the figure is released.
YMPE is a figure set each year by the Canadian government that specifies the earnings amount that can be used in calculating contributions to the Canada Pension Plan (CPP) and can be used in calculating contributions to registered pension plans, such as LAPP, for each year.