What is a Pension Adjustment (PA) and why is it deducted from my allowable RRSP contribution room?

Generally speaking, you will have a PA amount if you are the member of a Registered Pension Plan (RPP) or you have accrued benefits as a member of a Deferred Profit Sharing Plan (DPSP).

The PA includes amounts that have accrued to your benefit from your pension plan even though the benefits have not vested with you yet. The PA amount is calculated by your employer and represents the value of pension benefits accruing to you as an employee. The PA reduces your RRSP contribution room; they are never a negative number and thereby increasing your allowable RRSP contribution limit.

 

 

Related Questions

Back To Top
Quick Navigation
Classroom
  1. Overview
  2. Portfolio Design
  3. Investment Type
  4. Account Type
  5. Investment Costs
  6. IFM Articles
  7. Investing Resources
  8. IFM Videos
  9. Video Library
  10. Glossary
Portfolio Design
  1. Background
  2. Behavioural Finance
  3. Categories, Approaches, Styles
  4. A 12-Step Process
Investment Costs
  1. Background
  2. Fixed Income Investments
  3. Growth Investments
  4. Hybrid Investments
  5. Annual Fee Accounts
  6. Tax Treatment
Investment Type
  1. Background
  2. Fixed Income Investments
  3. Growth Investments
  4. Hybrid Investments
Investment Costs
  1. Background
  2. Fixed Income Investments
  3. Growth Investments
  4. Hybrid Investments
  5. Annual Fee Accounts
  6. Tax Treatment
Account Type
  1. Background
  2. RRSP
  3. RRIF
  4. RESP
  5. TFSA
  6. Locked-In Accounts
  7. Life-Income Fund
  1. Investing Resources
  2. IFM Videos
  3. Video Library
  4. Glossary

  1. How to Get Started:

    Classroom:

  2. Videos:

    Financial Planning & Budget:

  3. Tools & Calculators:

    Other Resources: