Recalculating a pension adjustment (PA)

You have to recalculate a pension adjustment (PA) in a registered pension plan when all of the following conditions are met:

• an employee returns from a leave of absence or a period of reduced service;
• the service was not previously pensionable service; and
• by April 30th of the following year:
  • benefits are retroactively provided under a defined benefit provision for the period concerned and the employee makes the commitment to purchase the benefits; or
  • retroactive contributions are made by the employee or the employer to a money purchase provision.

If a recalculated PA applies, you have to report an amended PA for each year after 1989 that is affected by the leave.

You do not have to report an amended PA when the difference between the previously reported PA and the amended PA is less than $50. However, you do have to report one if an employee asks you to accurately report the PA, or if we ask you to report the amended PA.

For the years in which you did not previously report a PA for the employee, you have to file an amended T4 slip showing the correct PA. If you previously reported a PA for the employee in a particular year, you have to show the total PA that applies for that year on an amended T4 slip.

For information on recalculating a PA, see Guide T4084, Pension Adjustment Guide. For information on calculating and reporting a past service pension adjustment (PSPA), see Guide T4104, Past Service Pension Adjustment Guide.

Date modified:

2015-12-17