Your contributions to SFPP are deducted from your paycheque and are based on your pensionable salary. Your employer also contributes to the Plan (1.1% more than you do). The contributions are combined and invested in the SFPP fund, which pays for pension benefits and other Plan costs.
Contribution rates are set by the Sponsor Board based on funding requirements identified in regular studies called actuarial valuations. Any changes to the contribution rates are shared by Plan members and employers.
After you reach 35 years of pensionable service, you no longer contribute to SFPP. However, if you remain employed by an SFPP employer, increases to your salary are still eligible to be considered in your pension calculation.
Your SFPP contributions are tax deductible, meaning they reduce the income you pay taxes on. Visit the Canada Revenue Agency website for more information.