Contribution deductibility and employer requirements

On this page

This page describes the details around tax deductions on contributions and includes these topics:

Deductibility of Contributions

All required current service pension plan contributions made by a member are income tax deductible, within the limits imposed by the Income Tax Act.

What employers report

Employers must report the following information on the member's T4 slip:

Must Report

  • The total annual member contributions in the RPP contribution box, including
    • those contributions made to the PSPP, up to the maximum contribution limit in the applicable year, and
    • any buy-back contributions that were paid in the same year through payroll deductions
  • the PSPP registration number (Registration Number 208777), and
  • the member's Pension Adjustment (PA) calculated by the employer.

Must Not Report

  • Contributions that exceed the annual maximum contribution limit and are thereby transferred to the Public Service Supplementary Benefit (PSSB) Account, or
  • Contributions that represent buyback contributions paid directly to OPB where members were provided with tax receipts directly from OPB.

Refer to CRA Pension Adjustment Guide for more information regarding PA calculations.

When member contributions end

Members must cease to make contributions to the PSPP as at November 30th of the year in which they reach age 71