1 December 1989 Ministerial Correspondence 59094 F - Eligibility of Elective Service for Transfer of Retiring Allowances to an RRSP

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.

December 1, 1989

Dear Sir:

Re:  Eligibility of Elective Service for transfer of Retiring Allowances to an RRSP

This is in reply to your letter of November 17, 1989 requesting clarification on the number of years of service to be used, in your case, in the calculation of the maximum amount of retiring allowance eligible for transfer to an RRSP.  Of particular concern to you is whether or not elective prior years of service with a former employer are eligible.

Paragraph 60(j.1) of the Income Tax Act provides that a taxpayer may transfer a retiring allowance to an RRSP and claim a deduction of the amount transferred up to a maximum of $2,000 for each year that the taxpayer was employed by the employer or by a previous employer of the retiree whose service therewith is recognized in determining the retiree's pension benefits.

24(1)

The above comments are based upon our best understanding of the law as it applies generally but consistent with circumstances as provided in your case.  They do not form an advance income tax ruling and they are not binding upon the Department.  We trust, however, that they will be satisfactory to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate