Benefits at a Glance

October 24, 2023

The LAPP Sponsor Board voted unanimously to maintain contribution rates for employers and members on pensionable earnings up to the Year's Maximum Pensionable Earnings (YMPE) and reduce contribution rates on pensionable earnings above the YMPE, bringing contribution rates into alignment with how LAPP benefits accrue.

The contribution rates effective January 1, 2024, are as follows:

*The YMPE is set at $66,600 for 2023. The 2024 YMPE is not yet known; LAPP Corporation will update employers when the figure is released.

YMPE is a figure set each year by the Canadian government that specifies the earnings amount that can be used in calculating contributions to the Canada Pension Plan (CPP) and can be used in calculating contributions to registered pension plans, such as LAPP, for each year.

The LAPP Sponsor Board announced that a one-time enhancement will be applied to LAPP’s January 1, 2024 Cost-Of-Living Adjustment (COLA). The enhancement will increase LAPP’s COLA from 60 to 100 per cent of the increase in the Alberta Consumer Price Index (CPI). You can read more about the one-time 100 per cent cost-of-living enhancement in LAPP’s newsroom.
 

October 12, 2023

To support the Canadian Dental Care Plan (CDCP), the 2023 Budget Implementation Act includes legislative updates to permit its effective administration of the Dental Care Measures Act.

The Dental Care Measures Act will permit the collection of Social Insurance Numbers from applicants and require the reporting of employer-provided dental coverage via T4 and T4A tax slips.

Starting from the 2023 tax year, employers are required to report annually on T4 or T4A whether an employee, former employee, or a deceased employee's spouse was eligible on December 31 of the reporting tax year for dental insurance or coverage, related to current or past employment.

As a result, the following new boxes will be added to the T4 and T4A slips for the 2023 tax year along with specific codes:

• T4 - Box 45: Employer-Offered Dental Benefits
• T4A - Box 015: Payer-Offered Dental Benefits
• Code 1: No access to any dental care insurance or coverage of dental services
• Code 2: Access to dental care insurance or coverage for the payee only
• Code 3: Access to dental care insurance or coverage for the payee, spouse, and dependents
• Code 4: Access to dental care insurance or coverage for the payee and their spouse
• Code 5: Access to dental care insurance or coverage for the payee and dependents

2023 T4/RL-1 Slip Reporting Requirements – Employment Income

Starting January 1, 2023, Canada required that certain credits be subtracted from Federal and Provincial taxable wages to align with the Enhanced Canada Pension Plan (CPP) program. However, for the 2023 tax year, these credits will need to be reinserted into the Employment Income boxes when reporting to the government on the T4 and RL-1 slips:

• T4 - Box 14: Employment Income
  • The credit, initially taken out from taxable wages for Federal and Provincial Withholding, will now be put back into Box 14 (Employment Income).

October 12, 2023

Effective January 9, 2024 an additional Canada Pension Plan (CPP) contribution will be deducted from pay for earnings beyond the initial pensionable earnings ceiling, known as the Year’s Maximum Pensionable Earnings (YMPE). This new deduction applies up to a higher limit called the Year’s Additional Maximum Pensionable Earnings (YAMPE).

For example, in 2024, the estimated first earnings ceiling is $66,600, and the second earnings ceiling is $71,200. If an employee earns between $66,700 and $71,200, they will contribute 4% for the 2nd Additional CPP (YAMPE).

Here's a simplified breakdown:

• 2024: Starting in this year, employees will pay an additional 4% contribution on earnings between $66,600 and $71,200. For example, if someone earns $70,000, their contribution would be 4% of $4,600, which equals $184.
• 2025: The same rules apply. Employees earning between $66,600 and $79,400 will contribute 4% on the amount between these two limits. If someone earns $75,000, their contribution would be 4% of $12,800, which equals $512.

To learn more about these changes to your CPP visit the Canada Pension Plan enhancement for detailed information.

Note:  There is nothing you need to do in respect of the CPP changes as they will happen automatically.

June 20, 2023

Some employees will see changes to the premiums deducted from their July 11, 2023 pay advice for some employee benefit plans. These changes come from the 2022 financial review of the plans.

Employee Benefit Plans - Premium Rates 2023

June 14 , 2023 

Some employees will see a change to their Long Term Disability (LTD)  premium rate effective May or June 2023 (depending on their union).

ATU 569      CUPE 30     CSU 52      EPA      CEMA     EFFU

For more details, please review your union Benefits Rate Sheet below.
These changes arise from the 2022 LTD Advisory Committee recommendations.

January 13, 2023

Blue Cross has released their updated guide to  dental fee coverage maximums for 2023 .

Please refer to your plan documents and talk to your dentist to determine what your out-of-pocket expenses may be for dental services.