ARCHIVED Services Pay Directive: 1992-061(23)

This Web page has been archived on the Web.

Appendix A

June 15, 1992

Ottawa, Canada
K1A 0S5

SUBJECT: Tax Reform - Past Service Pension Adjustment

1. PURPOSE

1.1 The purpose of this directive is to request the assistance of personnel offices in gathering the necessary information to calculate the Past Service Pension Adjustment (PSPA) amount for elective service which occurred on or after January 1, 1990.

2. BACKGROUND

2.1 Under the terms of Tax Reform, which was passed on June 27, 1990, an individual's Registered Retirement Savings Plan (RRSP) room must be adjusted to reflect any election for past service if that service, or a portion of it, occurred after December 31, 1989. This is done by means of the PSPA.

2.2 For more information about the PSPA, please consult Service Pay Directives 1992-007(03) and 1992-008(04).

3. PROCEDURES/INSTRUCTIONS

3.1 The Superannuation Branch will calculate the PSPA for affected employees. In order to complete the calculations, they will need additional information from the personnel office. This information will be requested by a form letter.

3.2 Elections involving prior contributory service will require the completion of Part 1 of Appendix "A" (copy attached). This form letter, which will contain completed tombstone data and periods of service, will ask if a return of contributions was directed to an RRSP. If a return of contributions was directed to an RSSP, the amount of money applicable to post 1989 service must be identified.

3.3 Elections involving prior non-contributory service will require the completion of Part 2 of Appendix "A" (copy attached). This part will request information as to the pensionable earnings received.

3.4 Elections involving both prior contributory and non-contributory service will require the completion of Parts 1 and 2 of Appendix "A" (copy attached).

3.5 Once this information is completed by the personnel office, the form must be forwarded to the Superannuation Branch.

3.6 The Superannuation Branch will contact personnel offices, beginning in June 1992, and ask them to complete a questionnaire for each affected employees. It is essential that these questionnaires be completed and returned promptly to the Superannuation Branch, so that the PSPA amounts can be issued on time.

4. ENQUIRIES

4.1 Any questions on the content of this directive should be directed to Domenic Crupi, of Compensation Advisory Group, at 819-956-2045.

Original Signed by
R. Gravel

R. Gravel
A/Director General
Compensation Directorate
Government Operational Service

Reference: CJA 9007-10-9, 9202-17

APPENDIX "A" NOTICE TO PERSONNEL

The changes to the Income Tax Act, known as Tax Reform, were enacted in 1990. As a result, we require additional information from your office for the following periods. Please complete and return the following questionnaire to the the Superannuation Branch.

• NAME:
• PRI/SIN:
• DEPT:
• P/L:
• P/O:
• SUP NO:

PART 1

PERIOD OF SERVICE	FROM (D-M-Y)	TO (D-M-Y)
Line 1.
Line 2.
Line 3.
Line 4.
Line 5.

Was a return of contributions paid into an RRSP for any of the periods of service mentioned above?

LINE	YES	NO

If yes, which portion of the return of contributions paid into an RRSP is applicable to service after 31/12/1989. $ __________________

PART 2

PLEASE INDICATE PENSIONABLE EARNINGS FOR EACH CALENDAR YEAR FOR POST 1989 SERVICE USING PAY PERIODS SIMILAR TO THE T4 PROCESS.

PENSIONABLE EARNINGS	(D-M-Y)	(D-M-Y)
Line 1.
Line 2.
Line 3.
Line 4.
Line 5.

• Personnel Officer:
• Telephone Number :
• Date: