After an employer adopts the Plan, it must pay Assessments in full and on time for its members. These Assessments are a percentage (currently 9%) of each member’s Earnings. Contributions from members are not permitted.
All Assessments are due on the last day of the month for which they are billed. This means that every month, your participating employer is required to pay a percentage of 1/12 of your projected annual Earnings.
If a participating employer does not pay the full Assessment when it is due, interest will be charged on Assessments that are three months or more overdue. The annual rate used to calculate interest is 4%. This rate is subject to periodic review.
Please note that CPF will not accept late Assessment payments unless the accrued interest is also paid. Once you retire under the Plan, no Assessments will be accepted other than in the ordinary course of your retirement processing.
Important note: We strongly encourage you to monitor whether your participating employer is paying Assessments in a timely manner. Late Assessment payments may accrue interest and also mean that you will not:
- Earn Credited Service unless and until Assessments are paid in full; and
- Receive all the benefits for which you and your family may be eligible because your member status under the Plan (Active / Terminated) may be impacted.