What deductions are taken from your pension?
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.