I know the Canada Pension Plan's Yearly Maximum Pensionable Earnings value (YMPE) is used for the following:
- to determine the annual limit for payroll contributions to the Canada Pension Plan for those currently employed, and
- to calculate benefits when somebody elects to receive their CPP retirement pension.
My questions:
- Who decides by how much the YMPE will increase each year?
- Is the amount of the increase in YMPE defined exactly according to some other series, e.g. annual inflation data from Statistics Canada, or some other amount? If there is a specific series, where can it be referenced?
- Are the increases in the YMPE identical, percentage-wise, to the annual indexing increases to those already receiving CPP benefits?
