CIFP Practice Exam 2026 – Comprehensive Study Guide

To determine Philip's total pension contribution when his earnings are $32,000 and the pension contributions are integrated with the Canada Pension Plan (CPP), we start by identifying the standard pension contribution rates for both the employee and employer, as well as the integration with the CPP.

The CPP contribution rate for employees as of the latest data is a specific percentage, which is applied to earnings up to a certain annual maximum limit after accounting for the basic exemption. For the purpose of this scenario, let's assume the contribution rate is 5.45% for employees.

Integrating pension contributions with the CPP means that the pension plan contributions will be coordinated with the contributions to the CPP. If Philip earns $32,000, we calculate his contribution as follows:

1. Deduct the basic exemption amount (which is $3,500) from the annual earnings of $32,000, resulting in $28,500 of pensionable earnings.

2. Multiply the pensionable earnings by the employee contribution rate of 5.45% (or the equivalent pension contribution percentage applicable to integrated plans).

Calculating this gives us:

- Pensionable earnings: $32,000 - $3,500 = $28,500

- Contribution: $28,500 x