Tax information for active members
Learn about your pension and income taxes, including what you need to know about pension adjustment amounts and your RRSP contribution limit.
Changes to your pension adjustment
Changes in your pension benefit may result in a change to your pension adjustment amount. The plan will report any changes to the CRA. We'll then inform you about the change by one of the following:
- An amended pension adjustment
- A past service pension adjustment
- A pension adjustment reversal
An amended pension adjustment occurs when we receive new information about your account, such as if your employer contacts us about adjusting your service to correct an error. Your pension adjustment is recalculated and the CRA adjusts your RRSP contribution room. The value will be reported on a T4A slip.
A past service pension adjustment occurs if you transferred service from another pension plan or bought service, which results in an increase in your pension benefit for a prior year. The past service pension adjustment is the difference between the previously reported pension adjustment and the recalculated amount for the same period. This may result in an adjustment to your RRSP contribution room. The value will be reported on a T4A slip.
A pension adjustment reversal happens if you stopped contributing to your pension and transferred your pension benefit out of the plan. The pension adjustment reversal restores your RRSP contribution room. The value will be reported on a T10 slip.