University of Ottawa Supplemental Retirement Pension Plan (SRPP)
The University of Ottawa Supplemental Retirement Pension Plan (SRPP) is a non-registered pension plan, which provides members with an additional benefit to the maximum prescribed by the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)).
Eligibility
To be eligible, the average salary has to exceed the average maximum salary of $196,013.05 (in 2024) as prescribedby the Canada Revenue Agency (CRA).
As of January 1, 2024, the SRPP calculates the annual pension up to an average maximum salary of $242,548 and the maximum salary for contributions is $262,814.
Contributions to the Plan
Member Contributions
In 2024, the member contributions are calculated as follows:
7.15% x member salary up to and including $44,323, which is the 2024 integration level. + 10.95% x member salary exceeding the $44,323, which is the 2024 integration level. (Note: 2024 maximum salary is $262,814) ---------- = member contributions The 2024 integration level is set by the UOPP.
The contributions for the SRPP are for the salary between $196,013.05 and $262,814 in 2024 and are deposited in the UOPP fund.
Under CRA tax rules, contributions to the University pension plan that are based on the salary are not taxable, resulting in an immediate tax saving for the member.
University Contributions
In 2024, the University contributions (including a provision for adverse deviation) are as follows:
7.30% x member salary up to and including $44,323, which is the 2024 integration level. + 11.30% x member salary exceeding the $44,323, which is the 2024 integration level. (Note:2024 maximum salary is $262,814) ---------- = University contributions The 2024 integration level is set by the UOPP.
The pension benefit of the SRPP
The SRPP provides a pension benefit for the pensionable service for the period of January 1, 1999 to December 31, 2007. Under the current SRPP provisions, the pre-1999 service does not provide for a pension benefit.
For pensionable service after 2007, the contributions for the salary above the maximum pensionable earning set by the Canada Revenue Agency (CRA), will be refunded with interest, at termination or retirement.
Based on the formula and example in the chart below, the best 60-month average salary will be covered up to the maximum average (set at $242,548 as at Janaury 1st 2024), which was determined to exceed the maximum pensionable earning ($196,013.05) set by the Canada Revenue Agency as of January 1, 2024.
Annual SRPP pension calculation
The following is the non-maximized pension formula for the basic plan minus the maximum established by the CRA.
Pension for service to December 31, 1998 (pre-1999)
pre 1999 dollar limit for 2024 - maximum pension as per the CRA for 2024 ---------- = total annual pension pre 1999
Pension for service post 1998 (from 1999 to 2003)
1.3% x 2003 integration level x years of credited service 1999 to 2003 + 2% X (average maximum salary – 2003 integration level) x years of credited service 1999 to 2003 - maximum pension as per the CRA for 2024 x years of credited service 1999 to 2003 ---------- = total annual pension post 1998
Pension for service post 2003 (from 2004 to 2007: max of 4 years)
1.3% x 2024 integration level x years of credited service from 2004 to 2007 + 2% X (average maximum salary – 2024 integration level) x years of credited service from 2004 to 2007 - maximum pension as per the CRA for 2024 x years of credited service from 2004 to 2007 ---------- = total annual pension post 2003
Total Annual Pension (the addition of the three preceding amounts)
total annual pension pre-1999 (for years of credited service before 1999 + total annual pension post-1998 (for years of credited service 1999 to 2003 + total annual pension post-2003 (for years of credited service 2004 to 2007 ---------- = SRPP total annual pension
Example
The data used as an example (the UOPP pension is calculated prior to the SRPP pension)
- Last day of employment (calculation date): June 30,2024
- Retirement date: July 1, 2024
- Age: 60 years
- Years of credited service (total pension service): 26 years
- For the SRPP pension calculation the total service period is 8 years (1999 to
2007)
- Under the current SRPP provision, the pre-1999 service does not provide for a pension benefit.
- For the service period post 1998 (from 1999 to 2003): 5 years
- For the service period post 2003 (from 2004 to 2007): 4 years
- Average maximum salary (best 60 months of earnings): $200,000
- Pre-1999 dollar limit for 2024: 3,284.27
- 2024 CRA Maximum pension per year of pensionable service: $3,610.67
- For the share of service prior to 2004 (use the 2003 integration level): $31,790
- For the share of service post 2003 (use the 2024 integration level): $44,323
For the service period up to 31 December 1998 (pre-1999)
$3,284.27 = Pre-1999 dollar limit for 2024 - $3,610.67 = CRA maximum for 2024 ----------- = $0.00 (total annual pension pre-1999)
For the service period post 1998 (1999 to 2003: max of 5 years)
$2,066.35 = 1.3% x ($31,790) x 5 years + $16,821.00 = 2% x ($200,000 - $31,790) x 5 years - $18,050.00= $3,610.67 x 5 years ----------- = $837.35 (total annual pension post-1998)
For the service period post-2003 (from 2004 to 2007)
$2,304.80 = 1.3% x $44,323 x 4 years + $12,454.16 = 2% x ($200,000 - $44,323) x 4 years - $14,440.00 = $3,610.67 x 4 years ----------- = $318.96 (total annual pension post-2003)
Total annual pension (sum of the three preceding calculations)
$0.00 = total annual pension pre-1999
+ $837.35 = total annual pension post-1998
+ $318.96 = total annual pension post-2003
-----------
= $1,156.31 (Total SRPP) 1
Pension Plan Publications
Annual indexation of pension benefits (inflation protection)
There is no automatic indexation.
Annual Member Statement
There is no annual pension plan statement for the supplemental pension plan.