OPSEU Local 596

Due to the Pension Plan Contribution Rate Increase Effective January 1st, 2012 (please see memo) base salaries will increase as of January 1, 2012 by 1.5%.  Please note that this is to compensate for the short fall of pension funds that are presently available.  The new salary grid is available under the documentation tab.

All salaries have increase but please note that your pension contributions have also increased.   This is explained within the HR Memo circulated to all Ryerson employees.  To summarize, prior to Jan 1, 2012 pension contributions were calculated as per:

8.0% on the first $3,500 of eligible earnings,
6.2% on eligible earnings above $3,500 up to the Year’s Maximum Pensionable Earnings (YMPE) ($50,100 as of 1/1/12)
8.0% on eligible earnings over the YMPE

From  Jan 1st, 2012 onward pension contributions will be calculated as follows:

9.5% on the first $3,500 of eligible earnings,
7.4% on eligible earnings above $3,500 up to the YMPE ($50,100 as of 1/1/12)
9.5% on eligible earnings over the YMPE

How does this effect you well let’s take a example.  If you were Grade 10, Step 6 on the salary grid you would be making $60,388.05 as of Dec 31, 2011.  You would have paid:

• 8% on the first 3500 which would be:   $280.00
• 6.2% on the next $46,600.00 (i.e. 50,100 – 3,500) which would be: $2889.20
• 8.0% on the remaining 10,288.05 (i.e. 60,388.05 – 50,100.00) of your salary which would be: $823.04

So your total contribution to your pension would have been $3992.24 so your net salary before taxes would have been 56,395.81

With the new calculation and taking into account the 1.5% increase your new gross salary as of Jan 1st, 2012 would be 61,293.87.  Using the new pension contribution calculations:

• 9.5% on the first $3500 which would be: $332.50
• 7.4% on the next $46,600.00 (i.e. 50,100 – 3,500) which would be: $3,448.40
• 9.5% on the remaining 11,193.87 (i.e. 61,293.87 – 50,100)  of your increased salary which would  be: $1,063.42

So now your contribution to your pension would be $4,843.82 so your net salary as of under the new pension contribution calculations would be $56,450.05.

This would mean that you would be ahead $54.24 by the end of 2012 using the new pension calculations.

Hello Fellow OPSEU Members

Just to remind you the Staff Star Breakfast is November 3rd, 2011. Please register through the link below. And do not forget the nominations are open until October 17th for the Award. Here is the link for the online registration system https://www.runner.hr.ryerson.ca/training/

PLEASE NOTE ONLY REGISTERED PERSONS WILL BE ACCOMMODATED AT THE BREAKFAST AS SEATING IS LIMITED