Federal Regulations

posting date Revised: January 2010 print page Print this page Email link to page Email the link
Canada Revenue Agency (CRA)

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 section). For more information on the CRA rates please visit the CRA website at http://www.cra-arc.gc.ca/

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:  https://laws.justice.gc.ca/eng/acts/I-3.3/.

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.

icon Important!  The employer should inform the OPTrust directly of any member that is near or above the maximum contributory earnings level for the year.