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Refund of excess contributionsUnder Ontario’s Pension Benefits
Act, your contributions (plus interest) made after 1986 cannot exceed
50% of the value of your earned pension for the same period. When your
plan membership ends, OPTrust compares the your total contributions
since 1987, plus interest, to the commuted value of your pension.
If your contributions exceed 50% of the commuted value, the balance will
be refunded to you. Under the Income Tax Act, you may be able to
transfer some of all of your refund to an RRSP. Any amount that cannot
be transferred to an RRSP will be paid to you in cash. In this case,
OPTrust must deduct income tax. |
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