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.
| MINISTER/DM'S OFFICE |
YS: 92-1736T |
| SECTION CHIEF |
| DISTRICT OFFICE, OR CORPORATE CASE FILE |
| RETURN TO RULINGS, ROOM 303, METCALFE BLDG |
April 21, 1992
19(1)
The Honourable Otto Jelinek, Minister of National Revenue, has asked me to reply to your letter of February 11, 1992, concerning the amount of your retiring allowance that can be transferred to a Registered Retirement Savings Plan (an RRSP).
The amount of retiring allowance transferable to an RRSP is limited to two thousand dollars for each year of service with an employer plus one thousand five hundred dollars for each year of service before 1989 for which employer contributions to a pension plan have not vested. In this respect, you indicate that you previously bought back 19(1) service under your pension plan but in doing so, were required to pay both your own and your employer's share of contributions. Therefore, you believe these are years for which your employer did not make contributions and for which you should be entitled to claim the additional transfer to an RRSP.
When an employee pays an amount on behalf of the employer to a pension plan in conjunction with the buy back of prior years' service, the employer contributions vest at that time in respect of each year bought back. Accordingly, the allowable transfer of a retiring allowance is limited to two thousand dollars for each of these years.
Without more information about your acquaintances, I regret that I am unable to comment on their assessments. Should you or these individuals have further questions, you may wish to contact
Mr. Wayne Harding, Acting Chief of the Deferred Income Plans Section, of the Rulings Directorate, who can be reached by telephone at (613) 957-9769 or by writing to the Rulings Directorate, 303 - 88 Metcalfe Street, Ottawa, Ontario, K1A 0L8.
I trust my comments have been of assistance to you.
Yours sincerely
Pierre Gravelle, Q.C.
c.c.: Mr. Wayne Harding, Acting Chief, Deferred Income Plans Section
M.P. Baldwin957-2131April 14, 19924-920694
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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