The Christian Education Pension Plan is designed to provide an important part of the income needed for retirement. The plan is a defined benefit pension plan and was established by Christian Education Benefit Solutions for employees of its schools in Canada.
Both participants and schools benefit when educators are able to retire at an appropriate age because they have sufficient resources to do so. However, given the limited financial resources of many schools, predictability of this can be a challenge.
Our pension program allows for the provision of retirement benefits to Christian school employees. The pension program fits well with the community model that drives both us and Christian education. By coordinating the retirement efforts of the Christian education community, we are able to do a much more efficient, effective, and complete job of providing retirement benefits. The challenge is to use the resources of schools to the greatest advantage for teachers.
1.9 percent X
Five-year Final Average Earnings X
Years of Eligible Service X
Either 1.00 (8.05 Percent Plan) or x 0.87 (7.00 Percent Plan) or x 0.69 (5.55 Percent Plan)
Annual Pension Benefit
Formula for Success
Let's say you have 30 years of service in the plan and a five-year final average earnings of $58,000. If your school participated in the 8.05 percent plan, your annual payout at age 65 would be: 1.9 percent x $58,000 x 30 = $33,060 annually for life.
One of the unique benefits for Canadian employees is the government-sponsored Christian Education Pension Plan. If your school opted for the 8.05 percent plan, you would add this to the amount from the pension plan and OAS (old age & survivor):
- CSI Plan $33,060 Annually
- CPP $10,905 Annually
- OAS $6,204 Annually
- TOTAL $50,169 Per Year, For Life (equal to 86 percent of your final earnings)
Update on the Christian Education Pension Plan and Trust Fund
Recently, the Ontario government proposed changes in legislation that could impact how the Christian Education Pension Plan ("the Plan") is funded. Although not currently in force, these changes have the potential to increase costs and decrease the benefits of the Plan. These possible effects would impact participants across Canada.
You can be assured that our Trustees are deeply committed to protecting the Plan and those who depend on it. Currently, we are working to have the Plan continue to operate under the present funding rules for at least the next three years. During that period, we will be meeting with policymakers to have the proposed changes amended or obtain an exemption from them. In the event that the legislation comes into force, we will explore options to overcome any possible negative impact on the Plan and its participants.
As further information becomes available, the Trustees will provide timely updates.
Drawing from his past experiences and relationships, CSI Co-CEO Glenn Vos observes four keys that contribute to a school flourishing in this month’s Lead Well article.
Recent Pension Resources
35% of YMPE is used to determine eligibility for staff
YMPE for the current plan year and previous two plan years are as follows
To: All Participating School Boards and Principals, All Active and Inactive Participants, and All Retirees
From: Howard Van Mersbergen, Executive Secretary-Treasurer
Final Average Earnings (FAE) Update - Extended to August 31, 2025
Questions - Contact us if you have questions or need assistance