Summary of deduction changes taking effect on your July pension
There are a few pension deduction changes taking effect on your July pension, so we wanted to provide you with a summary of the changes:
- Your monthly tax deductions will be decreasing (by approximately $11.64) for most retired members due to the federal government increasing the basic personal amount. This means that unless you are also impacted by the Insured Benefits and SLI premium changes, your net pension payment will increase (by approximately $11.64) going forward.
These changes are a result of the CRA adopting a new method of calculating the Basic Personal Amount that reflects each individual’s income. You can learn more here: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/basic-personal-amount.html
Our payroll provider just informed us that they’ll be implementing this change for your July pension. While the change to the basic personal amount was effective starting this past March, as it’s a relatively small adjustment, ADP will not be retroactively adjusting the deductions from March to July. Instead, the adjustment will be handled when you file your taxes with CRA.
- As per our recent mailing about OUP premium increases and the end of the SLI premium holiday – impacted retired members will see those changes reflected on your July payments as well.
If you have any questions, contact us toll-free at 1-800-668-6203 or 416-364-5035 or email us at email@example.com. The Client Care Centre is available Monday through Friday, 8:00 a.m. to 5:00 p.m.
TVO retired members: You will see the decrease in your tax deductions on your July 2 pension payment. The OUP and SLI premium changes mentioned above do not apply to you since you are not part of the Government of Ontario’s insured benefits program.