Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Mr. G.E.. Racine Chief Advisory Services Pay Products Group Accounting, Banking and Compensation Directorate Supply and Services Canada Ottawa, Ontario K1A OS5
G.D. Middleton 995-0051 May 20, 1986
Dear Mr. Racine:
This is in reply to your letter of March 20 concerning the amount a federal public servant may contribute to a Registered Retirement Savings Plan ("RRSP") where the servant and his employer no longer make contributions to their superannuation fund in respect of current services.
In particular, you describe a situation where a public servant and his employer make contributions to the PSSA plan in a year subsequent to the servant's first 35 years of service (the maximum period under the PSSA plan) and these current contributions pertain to the services rendered in that prior period.
Interpretation Bulletin IT-124R4 to which you refer in your letter has been modified and renumbered IT-124R5 , we enclose a copy for your convenience. As indicated in paragraph 7 of IT-124R5 , it is our view that the public servant would be entitled, in the circumstances described above, to claim a deduction for RRSP contributions within the limits described in paragraph 4 of IT-124R5 (lesser of $5,500. and 20 percent of earned income).
We are enclosing a copy of the Department of Finance Release dated November 21, 1985 for your information. As indicated in the third paragraph, the $5,500 limit on RRSP contributions is to be raised to $7,500 for the 1986 year and this increased limit may apply to individuals such as the public servant described above.
We trust our comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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