Past Service Pension Adjustments

posting date Revised: February 1, 2022 print page Print this page Email link to page Email the link

For buybacks involving pension service for previous tax years, a “past service pension adjustment” (PSPA) approved by CRA may be required.

In most cases, once OPTrust receives the signed Agreement to Purchase Credit (OPTrust 1017) for service prior to the current tax year, we calculate the PSPA and forward it directly to CRA for approval. An exception to this rule concerns prior year service for an LOA or temporary part-time work arrangement that ends in the current tax year. In this case, OPTrust will report a PA, instead of a PSPA. 

Once OPTrust receives CRA approval for the PSPA, we will inform the member and confirm the payment option selected.