Author Topic: Pension Adjustement Reversal (PAR) on a DC Pension Plan  (Read 1020 times)

sammy

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Pension Adjustement Reversal (PAR) on a DC Pension Plan
« on: April 06, 2018, 09:53:03 PM »
Hello,

I have a question on RRSP contribution room in the year following leaving an employer with a DC pension plan.

Here is my situation:

The employer I worked for in 2017 got bought out in January and I transferred over to the other company that bought them out. The old employer I was with had a DC pension plan, but the new employer I am with now has a group RRSP plan. Since my pension adjustment I reported in 2016 was high, it dropped my RRSP contribution room in 2017 to the point where my group RRSP with my new employer put me in an over-contribution situation. Does anyone know if I should be eligible for a pension adjustment reversal in 2017 since I never did receive the amount anticipated due to my reported 2016 pension adjustment? Any help on the situation would be greatly appreciated as I'm now in a situation of a large over-contribution.

Thanks,

Sammy

Lews Therin

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Re: Pension Adjustement Reversal (PAR) on a DC Pension Plan
« Reply #1 on: May 11, 2018, 12:15:11 PM »
What exactly happened with that pension? Did you have a return of contributions?

Have you tried calling the pension people for the old employer?

Example of DC pension: When a person leaves the military, they get a folder with the information on the transfer of contributions + the PAR.

FIRE Artist

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Re: Pension Adjustement Reversal (PAR) on a DC Pension Plan
« Reply #2 on: May 11, 2018, 02:09:18 PM »
Interesting problem, but I suspect you will be out of luck, your RRSP room is calculated on the previous years salary, not current. For that reason immigrants to Canada canít contribute until the second tax year.

I think your employer should be doing something like contributions to TFSA to make up your pension match until the second year when it can all go into an RRSP. You will have to pay up front tax though.