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.
| Supply and Services Canada |
| Accounting, Banking and |
| Compensation Directorate |
File No. 900880 |
| Place du Portage |
Maureen Shea-DesRosierss |
| 11A1, Phase III |
(613) 957-8953 |
| Ottawa, Ontario |
| K1A 0S5 |
| Attention: Jan MorrisAdvisory Services - PayPay Products Group Compensation |
June 5, 1990
Dear Sirs:
Re: Past service contributions "While a contributor" or "While not a contributor"
This is in reply to your letter of May 18, 1990 concerning the tax deductibility of registered pension plan contributions.
To be able to indicate whether the contributions were in respect of a period "while a contributor" or "while not a contributor", the contract of employment is needed to verify the length of time the individual is hired (ex. 6 months, 8 months).
Paragraph 5(1)(b) of the Public Service Superannuation Act states that a person employed in the Public Service for a term of six months or less is not required to contribute to the Superannuation Plan unless such person has been employed substantially without interruption for a period of more than 6 months.
Therefore a person employed for less than six months, usually referred to as a casual employee, does not contribute to the Superannuation Plan and such service will, in our opinion, be considered a period while the person was "not a contributor".
A person hired for a period of more than 6 months, usually referred to as a term employee, will have to contribute to the Superannuation Plan from one day and the total employment period will be considered a period "while a contributor".
Should a person be employed for a period of 6 months (as a casual employee) and then have the contract renewed for another 6 months, the person would then contribute to the Superannuation Plan starting with the second 6 month period and that period will be considered to be a period "while a contributor" while the first 6 month period will be a period "while not a contributor".
Since we had no information pertaining to the contracts of employment, we were unable to answer your three scenarios as presented. We trust however that our comments will enable you to apply the "while or while not a contributor" concept to any of the situations that might present themselves to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1990
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1990
Email this Content