The role of the CRA is to administer tax-sheltered vehicles that individuals use
for retirement savings. It uses Pension Adjustment (PA), Past Service Pension
Adjustment (PSPA) and Pension Adjustment Reversal (PAR) reporting requirements
to “level the playing field” between tax-sheltered vehicles.
The CRA also sets the Year’s Basic Exemption (YBE) and Year’s Maximum
Pensionable Earnings (YMPE) and the Canada Pension Plan (CPP) contribution
levels for both the member and employer.
The YBE and YMPE are also used to determine the level of member and employer
contributions that are payable to the OPSEU Pension Plan (see the Reporting Pension Data
For more information on the CRA rates please visit the CRA website at
Income Tax Act (ITA)
The ITA sets the maximum benefit level in a defined benefit plan, maximum
transfer value of benefits and tax deductibility of contributions (S147.2).
Section 16 of the OPSEU Pension Plan Text stipulates that the administration of
the Plan must comply with the ITA and its Regulations. For more information on
the ITA, please visit the following link to the Department of Justice site to
read it online: http://laws.justice.gc.ca/en/I-3.3/index.html.
Maximum Contributory Earnings
The maximum contribution that can be made by a member of the Plan is set by the
ITA (section 8503(4)(a)). Pension earned in excess of the ITA limit is payable
from the OPSEU Supplementary Benefits Plan, which is administered separately by
the OPSEU Pension Trust. For a list of historical rates please see the
Forms and Tools page.
The employer should inform the OPTrust directly
of any member that is near or above the maximum contributory earnings level for