What deductions are taken from your pension?
What Happens to your Pension After You Retire?
What Deductions are Taken from Your Pension?
Spousal or child support payments
Additional Canada revenue Agency deductions
What Death Benefits are Available for your Survivors after Retirement?
What About Health, Dental and Life Insurance Benefits?
Taxes
Pensions are considered income and as such are subject to income tax. As part of your retirement package we ask you to complete two TD1 forms, one federal and one provincial. Unless you inform us otherwise, we only deduct based on your OPTrust pension income. If you are collecting CPP and OAS and have other income, you may be in a higher tax bracket, but unless you provide that information on your TD1, we don’t know and can’t deduct additional money. This could lead to tax owing and even tax penalties.