How your plan works

UPP is a contributory Defined Benefit (DB) pension plan. The investment earnings of the plan, as well as the contributions made by you and your employer, are what fund your pension.

Your matched contributions

The amount you contribute to the plan each year is based on your pensionable earnings, the average YMPE (a threshold set each year by the federal government, based on the average wage in Canada)* and UPP’s contribution rate. Your employer contributes an equal amount. Contributions flowing into the plan are invested by investment professionals bound by fiduciary duty to act in your best interests.

As a UPP member, you currently contribute:

Your annual contribution matched by your employer equals 9.2% of your annual pensionable earnings up to the YMPE plus 11.5% of your annual pensionable earnings above the YMPE

The plan’s contribution rates are set by UPP’s Joint Sponsors and are subject to change based on the plans’ financial status.

Calculating your pension

As a member of UPP, your pension is paid for life. The pension you receive is based on a formula that considers a few key components:

Your Best Average Earnings: average of your highest 48 months of pensionable earnings as a member, up to the maximum pension limit under the Income Tax Act.

Average YMPE*: average of the YMPE (Year’s Maximum Pensionable Earnings) established by the federal government in the last 48 months before you retire.

Your years of Pensionable Service: the amount of continuous service during which you’ve contributed to UPP, including any service you transferred in.

For each year of pensionable service after joining UPP, you will accrue an annual pension benefit, payable at your Normal Retirement Date.

UPP’s Pension Formula

You annual UPP pension equals the best average earnings (up to the aYMPE x1.6%) plus the best average earnings (above the aYMPE x2.0%) times your pensionable service
Like all registered pension plans, UPP’s pension benefit is subject to the maximum pension limits under the Income Tax Act, which increase annually.

Calculating how much your pension benefit will be

UPP provides personalized information that makes it easy to keep track of your pension’s growth and see how much your monthly pension would be at various retirement dates. Each year, you will receive an annual statement providing a snapshot of your benefits, including those from your prior plan benefits (if any), and your earliest retirement date and normal retirement date. If your employer offers a member portal, you can use it anytime and use the pension calculator to estimate your future pension, using your own pension data and retirement dates.

Members of prior plans

If you were earning pension benefits under your university’s or employer’s prior pension plan when it converted to UPP, you automatically become a member of UPP on the day your university or employer joins. Pension benefits earned under your prior plan remain unchanged and are now payable from UPP.

You can still:

  • get information about your prior plan through your university’s website and pension administration team, and
  • use the pension calculator on your Prior Plan’s website (if available) to see your benefits earned under both your Prior Plan and UPP and explore retirement options.

Please refer to your university’s UPP Quick Guide for information on how the pension benefits earned under both your prior plan and UPP work together to provide you with a secure retirement benefit when you retire.

*The YMPE for the 2023 taxation year is $66,600.00


Learn more about your pension

This handbook summarizes the main features of your University Pension Plan Ontario (UPP) in simple terms

We answer top questions about your plan and our investing program
Better understand the key terms that make up your plan


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