Pension Adjustment Calculator

As required by the tax legislation, a Pension Adjustment (PA) must be reported on the T4 for a pension plan member who accrues benefits under a registered pension plan during the year. If you or your client has accrued a pension benefit under an IPP in 2024, please follow the following steps below.

1. Calculating the 2024 PA for an IPP Member

For an IPP member, the 2024 PA is $31,890 if Pensionable Earnings exceed $180,500.

Note that Pensionable Earnings are the total of all the following amounts paid by all employer(s) that participate in the IPP, where applicable:

• Employment income as shown in Box 14 of T4
• Actual amount shown in Box 35 of T4PS

If the IPP member’s Pensionable Earnings for 2024 is less than $180,500, please use our IPP On-Line Pension Adjustment (PA) Calculator© to calculate the PA.

2. Details to report on T4 slips

For active IPP members accruing pension benefits, it is imperative these 2 boxes are filled on their annual T4 slip(s):

• Box 52: Pension Adjustment
• Box 50: Pension plan’s 7 digit CRA registration number

In accordance with Canada Revenue Agency Compliance Bulletin No. 6, effective January 1, 2010, CRA will apply a penalty in respect of unreported and/or misreported pension adjustments.

3. Send Copy of T4 to Westcoast Actuaries Inc.

Once available, please send a copy of the IPP member’s T4 slips to us via secure email for proper record-keeping and plan administration purposes.

If you encounter any issues or have any questions regarding the above, please do not hesitate to contact your team at Westcoast Actuaries Inc.