Traf
TRAF Deduction Method
As legislated by The Teachers' Pensions Act, the Teachers' Retirement Allowances Fund (TRAF) is responsible for the administration of the pension plan for public school teachers in Manitoba. All school divisions are responsible under legislation to provide accurate and timely information to TRAF with respect to each teacher in their employ.
New Method of Deducting TRAF Contributions
Since all school divisions report the number of pensionable days paid to TRAF each month/term, TRAF contributions will now be calculated and remitted based on the days paid each month as well. This will result in a substantial reduction in the number of contribution variances occurring from the situations noted above.
Impact to the Teacher
All TRAF contributions will be deducted from September to June based on the number of pensionable days paid in each month. As a result, TRAF contributions will fluctuate from month-to-month and will only be deducted from September to June. TRAF contributions will not be required in July and August, unless the member is a superintendent or in a position that includes paid days for July and August.
The total contributions required over the course of the year are the same under both (old and new) methods.
With regard to the new TRAF deduction methods (starting September 2016), the Association is offering the following additional information:
1. TRAF deductions will be based on actual teaching days (that includes PD and Admin days) in a school year.
2. There will be no TRAF deductions during holidays, breaks, or the summer months.
3. The amount of contribution per cheque will be based on the number of teaching days in a given pay period.
4. For members wishing to have the ability to roughly calculate their contribution per year, use a multiplier of approximately 9.4% of earnings from the NET Grid.
5. For members wishing to accurately calculate their contribution per year or per day, please see the additional information below.
6. For members not wishing to do the math, click here for examples of deductions based on $65,000.00, $77,000.00 and $87,000.00 salaries.
ADDITIONAL INFORMATION ON TRAF DEDUCTIONS
This information was received in reply from a number of questions asked of TRAF:
The TRAF contribution rate is as follows:
8.8% on earnings up to the Year's Maximum Pensionable Earnings (YMPE)
10.4% on earnings above the YMPE
The YMPE for 2017 is $55,300. (This is established by Canada Pension Plan each year, so it will change in January of each year.) The TRAF contributions for a teacher making $87,000 per year is calculated as follows:
$87,000 - $55,300 = $31,700
$55,300 x 8.8% = $4,866.40
$31,700 x 10.4% = $3,296.80
$4,866.40 + $3,296.80 = $8,163.20
To calculate the TRAF deductions for each pay period, the teacher can multiply the annual contribution by the number of pensionable days paid over the total days in the working year. Another way of working out the deduction is to calculate the daily rate. For example, September's first TRAF deduction is:
$8,163.20 x 8 days / 193 days = $338.37
OR
$8,163.20 / 193 days = $42.33 (per day) x 8 days = $338.37
The YMPE will change in January 2018, so the annual contribution will have to be recalculated before the each pay's TRAF deduction can be determined.
As legislated by The Teachers' Pensions Act, the Teachers' Retirement Allowances Fund (TRAF) is responsible for the administration of the pension plan for public school teachers in Manitoba. All school divisions are responsible under legislation to provide accurate and timely information to TRAF with respect to each teacher in their employ.
New Method of Deducting TRAF Contributions
Since all school divisions report the number of pensionable days paid to TRAF each month/term, TRAF contributions will now be calculated and remitted based on the days paid each month as well. This will result in a substantial reduction in the number of contribution variances occurring from the situations noted above.
Impact to the Teacher
All TRAF contributions will be deducted from September to June based on the number of pensionable days paid in each month. As a result, TRAF contributions will fluctuate from month-to-month and will only be deducted from September to June. TRAF contributions will not be required in July and August, unless the member is a superintendent or in a position that includes paid days for July and August.
The total contributions required over the course of the year are the same under both (old and new) methods.
With regard to the new TRAF deduction methods (starting September 2016), the Association is offering the following additional information:
1. TRAF deductions will be based on actual teaching days (that includes PD and Admin days) in a school year.
2. There will be no TRAF deductions during holidays, breaks, or the summer months.
3. The amount of contribution per cheque will be based on the number of teaching days in a given pay period.
4. For members wishing to have the ability to roughly calculate their contribution per year, use a multiplier of approximately 9.4% of earnings from the NET Grid.
5. For members wishing to accurately calculate their contribution per year or per day, please see the additional information below.
6. For members not wishing to do the math, click here for examples of deductions based on $65,000.00, $77,000.00 and $87,000.00 salaries.
ADDITIONAL INFORMATION ON TRAF DEDUCTIONS
This information was received in reply from a number of questions asked of TRAF:
The TRAF contribution rate is as follows:
8.8% on earnings up to the Year's Maximum Pensionable Earnings (YMPE)
10.4% on earnings above the YMPE
The YMPE for 2017 is $55,300. (This is established by Canada Pension Plan each year, so it will change in January of each year.) The TRAF contributions for a teacher making $87,000 per year is calculated as follows:
$87,000 - $55,300 = $31,700
$55,300 x 8.8% = $4,866.40
$31,700 x 10.4% = $3,296.80
$4,866.40 + $3,296.80 = $8,163.20
To calculate the TRAF deductions for each pay period, the teacher can multiply the annual contribution by the number of pensionable days paid over the total days in the working year. Another way of working out the deduction is to calculate the daily rate. For example, September's first TRAF deduction is:
$8,163.20 x 8 days / 193 days = $338.37
OR
$8,163.20 / 193 days = $42.33 (per day) x 8 days = $338.37
The YMPE will change in January 2018, so the annual contribution will have to be recalculated before the each pay's TRAF deduction can be determined.