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. BC's College Pension Plan or your employer will report any of the following changes to the Canada Revenue Agency (CRA):
- Amended pension adjustment
- Past service pension adjustment
- Pension adjustment reversal
An amended pension adjustment occurs when we receive new information about your account – for example, if your employer contacts us about adjusting your service to correct an error. Your pension adjustment is recalculated, and CRA adjusts your RRSP contribution room. The pension adjustment amount will be reported on a T4 slip (or T4A if the original pension adjustment was reported on a T4A).
A past service pension adjustment occurs if you transferred service from another pension plan or bought service. This 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 occurs 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.