What’s changing in DBprime?

The contribution rate in DBprime is going down by 1%. Starting in 2025, you will contribute 10.2% on your earnings below the Year’s Maximum Pensionable Earnings (YMPE) and 13.8% on your earnings above the YMPE. This is a 1% decrease to both member and employer contributions.

Will my employer continue to make matching contributions?

Yes, your employer will continue to match these new lower rates.

Can I continue to contribute at the higher rate to earn more pension?

No, there is no option to continue contributing at the higher rate. But not to worry - the DBprime pension formula is not changing – you’ll continue to build the same great pension, but with lower contributions!

Do these changes impact any pension purchases I choose to make?

This depends on which type of purchase you’re making. The cost to purchase may be based on the:

• Contribution rate in effect at the time a leave occurred
• Date of the purchase request
• Actuarial value of the benefit

Our Plan rules regarding DBprime purchases have not changed as a result of the contribution rate change. Read more about purchases here.

Is the reduction to DBprime rates sustainable? Will rates go up again?

We know you don’t want your contributions to go down only to go up again later. And neither do we. So, the Plan’s governors will only allow a contribution rate reduction when they are confident that they won’t need to increase those rates for at least the next five years. Our detailed analysis shows that the Plan’s funding level is expected to remain sustainable even with lower contribution rates in DBprime.