Frequently Asked Questions


What is a pension adjustment (PA) and how does it affect me?

The Income Tax Act requires pension adjustments to be reported in respect of all contributions made to any pension plan. Each year, your employer(s) must report the amount of employer contributions on your T4 in the box entitled “Pension Adjustment”. This amount is used to reduce your RRSP contribution room in the year following the year of the T4.

The fund is not your Employer and therefore does not report Pension Adjustments (PAs). It is not the fund’s responsibility to ensure Employers’ compliance with the Income Tax Act.

The idea behind the Pension Adjustment (PA) is that everyone should have similar access to tax-sheltered retirement savings, whether they are earning a pension through a registered pension plan or are saving for retirement through their personal RRSP, or both. If you’re already earning a pension through your employer and the AFM/CFM-sponsored registered pension plan, then your ability to save through your RRSP needs to be limited in some way to reflect your registered pension plan participation. This is why the Pension Adjustment (PA) exists.

What happens if I stop working or become disabled before I retire?

If you are a vested member, you are entitled to benefits on becoming totally and permanently disabled or if you stop working. The term “vested” means that you have an absolute right to receive a benefit in accordance with the plan terms. Please check the Plan Summary, for detailed information about what happens in any of these events.