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.
When you are an active member of BC's College Pension Plan, your pension contributions are deducted from your gross pensionable earnings on each paycheque.
This means your employer deducts your pension contributions from your salary payments before deducting income tax. This reduces your taxable income – the amount of income you are taxed on while you are working.
Each year, the Canada Revenue Agency sets a maximum deductible pension contribution limit. On your T4 slip, your employer can only report the maximum deductible pension contribution limit or actual contributions, whichever is less.
Plan members can only claim a tax deduction for pension plan contributions up to the maximum deductible amount, even if the amount contributed to the plan is higher.
This means there may be tax implications if you make more than a certain level of income. You may want to speak with an independent financial adviser about how to avoid or minimize these tax implications.
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