CBC Employees will see an increase in their contribution to the CBC pension plan reflected on the July 25 pay. An agreement reached with CBC unions at the Consultative Committee on Staff Benefits in 2012 called for increases in the employee contributions from 34% of cost to 40% over a two-year period. The last increase came into effect on July 1st of this year. The increase was in response to a cut in federal funding to the CBC which created a $200-million shortfall.
The effect will vary depending on your salary and the levels of provincial tax. But as an example, for a salary of $70,763, the increase would apply as follows:
* Salary: $70,763
* Total pension contribution before July 1/13: $4,255
* Total pension contribution after July 1/13: $4,764 ($509 total increase or approximately $20 per pay)
Just a reminder that the money is paid towards your pension and the amount is tax deductible. It should also be noted that the federal government has been pushing all Crown corporations to move the employee contribution levels to 50% of costs.