Responsibilities | Pension Plans
Information for Pension Plan Members

Interest on Member Contributions
Pension plans are required to credit a reasonable rate of interest on member contributions, including additional voluntary contributions.

In the case of a defined benefit plan, interest must be credited at a rate equal to either:

• the annual average yields on five year personal fixed term chartered bank deposits, calculated over a reasonably recent 12 month period, or
  
  
• the net pension fund earnings.

The plan sponsor may choose which of these two rates to apply.

In a defined contribution plan, interest credited depends on the net pension fund earnings.
Interest must be calculated and applied at least annually. If you are entitled to a refund of contributions, interest must be calculated and applied to the end of the month immediately preceding the payment.

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