Retirement Plan Information
Eligibility
Continuing and Term Employees
Full and part-time continuing employees and full and part-time term employees with appointments of 12 months or more are eligible to join the plan.
- You may be enrolled in the plan on the first day of any month coincident with or following your date of employment.
- Membership is compulsory by the first day of July after you reach age 30.
If you are appointed to less than a one-year term, you are not eligible to join the plan. If your term is extended beyond a one-year period, you may join the plan retroactive to the date of your appointment.
Staff with full-time term appointments of at least six months but less than 12 months, who have been appointed to a second term, will be eligible to join the plan from the date of appointment to the second term if the break between the first and second term is less than 12 months.
Note: Once you join the plan, you must remain a member while employed by the University.
Contact Pension Services if you have any questions regarding the information on these pages. Contact the Office of Pension Fund Management if you have questions regarding the plan governance or investments.
Part-Time Employees
Eligible part-time employees are those who meet one of the two requirements below in each of the previous two calendar years:
- Earn at least 35% of the CPP Yearly Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan (CPP) or
- Work 700 hours or more
Once a part-time employee becomes a member of the Plan, membership will continue if employment continues, regardless of earnings level or hours worked.
Note: Once you join the plan, you must remain a member while employed by the University.
Contact Pension Services if you have any questions regarding the information on these pages. Contact the Office of Pension Fund Management if you have questions regarding the plan governance or investments.
Growing Your Pension Assets
Employee Contributions
You are required to contribute 4.37% of your earnings up to the CPP Yearly Maximum Pensionable Earnings (YMPE) plus 6% of your earnings above the YMPE. Your required contributions are credited to an account set up on your behalf, called the Money Purchase Component Account (MPC).
Contributions are tax-deductible.
Example:
If the YMPE is $66,600 (2023) and you earn $80,000 per annum, the annual contribution total is $3,714.42. The calculation is as follows:
| Money Purchase Component (MPC) Contribution | |
|---|---|
| 4.37% of $66,600 | $2,910.42 |
| 6% of ($80,000 – $66,600) | $804.00 |
| Total MPC Contribution | $3,714.42 |
Employer Contributions
- The employer contributes an amount equal to your MPC contributions plus 0.25% of your pensionable earnings to your Money Purchase Component Account.
- The employer also contributes, as required, the normal cost of the Minimum Guarantee Pension and the amortization of any unfunded liability or solvency deficit.
Additional Voluntary Contributions (AVC)
You may elect to make additional voluntary contributions (AVCs) to the Carleton University Retirement Plan for the purpose of increasing your pension benefits. At retirement, Additional Voluntary Contributions can be withdrawn in cash, transferred to an RRSP (Registered Retirement Savings Plan) or RRIF, or left in the Plan. However, any special transferred contributions that were subject to “locking in” must remain locked in. Cash withdrawals are subject to taxation.
Note that you may make a one-time withdrawal of your AVC balance from the Plan prior to your termination of employment or retirement. After electing to do so, you will not be eligible to make any further AVCs to the plan.
Your contribution may take the form of an RRSP transfer, a lump sum deposit, or a payroll deduction. Voluntary cash contributions or payroll deductions are tax deductible.
RRSP Transfer
- Complete “Area 1” of the T2033 form.
- Arrange to meet a Pension Specialist to complete “Area II” of the form.
- Send it to the Financial Institution holding the RRSP funds. Carleton University must receive the original T2033 with signatures (no copies).
- You will receive confirmation from Pension Services when the funds have been received and deposited to your AVC account.
Lump Sum Deposits and Payroll Deduction
- Send your request, stating your name and Banner ID to a Pension Specialist.
- The Pension Specialist will inform you of the maximum amount you are eligible to contribute according to the income tax act.
- Confirm in writing the amount that you wish to be deducted per pay or that you will be depositing by cheque and include your name and Banner ID.
Maximum Contributions
- The sum of Employee and University required contributions to your Money Purchase Component account plus lump sum or payroll AVCs cannot exceed the Canada Revenue Agency maximum.
Buying Back Past Service
If you have continuous service with the University during which you were eligible to participate in the Plan, but did not (example: If you did not join the retirement plan prior to age 30), you may purchase all or part of your eligible past service subject to Income Tax Act limits.
The actual cost will depend on your salary and age at the time the service is purchased.
A Pension Specialist can advise you whether or not you are eligible to make past service contributions. Past service contributions are credited to your Defined Benefit Contribution Account and increase your pension at retirement. These contributions are tax deductible and subject to Income Tax Act limits.
To Request a Buyback Cost Estimate
- Send your request, stating your name, Banner ID and the period in question, to a Pension Specialist.
- The Pension Specialist will send you a summary verifying the cost, the buyback period and income tax implications.
- Consult a financial advisor prior to making an election.
To Purchase Past Service
Confirm in writing the amount to be deducted per pay or to be deposited by cheque and include your name and Banner ID.
If you are transferring an RRSP to purchase the service:
- Complete “Area I” of the T2033 form.
- Arrange to meet the Pension Specialist to complete “Area II” of the form.
- Send the T2033 to the Financial Institution holding the RRSP funds. Advise your Financial Institution that Carleton University must receive the T2033 with original signatures (no copies).
- You will receive confirmation from Pension Services when the funds have been received and deposited.
Pension Portability
You may transfer any pension contributions made by you and by your previous employer to the University pension plan. Transfers apply either where the University has a reciprocal agreement with your previous employer or under the portability provisions of the Carleton University Retirement Plan.
If you do transfer contributions, you may request, within twelve months of becoming a member, that your period of credited service be increased.
Group RRSP
More information about our Group RRSP program can be found on our Group RRSP page.