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.
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