ARCHIVED Services Pay Directive: 1989-109 (38)

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August 25, 1989

Ottawa, Ontario
K1A 0S5

SUBJECT: Refund of Superannuation Contributions - T4


1.1 This directive supersedes Services Pay Directive 1989-56(29) dated June 15, 1989 which provides departments and paying offices with the procedure to follow when a refund of excess superannuation contributions is to be made.

Note: Changes from the above-mentioned directive are identified by a vertical line.


2.1 This directive supersedes and cancels Services Pay Directive 1989-056(29) dated June 15, 1989.


3.1 Revenue Canada - Taxation have advised us of a change in procedure with regards to situations where there have been over deductions made from an employee's salary (e.g 35 years paid up, contributions paid for past service, etc.).


4.1 Where an over contribution is discovered and refunded in the same calendar year in which it occurred, no T4A is to be issued in respect of the amount refunded. The employee's superannuation contributions for the year in question will be reduced by the amount of the refund without income tax deductions at source.

4.2 In the situation where refunds of excess contributions are made in a year subsequent to the year in which the contributions were withheld, the following actions are to be taken by the paying office:

  1. Issue a refund in the amount of the excess contribution to the contributor.

    This refund is taxable at source.
  2. Issue a T4A in the current year denoting a payment in Box D for the refund.

4.3 Please note that effective immediately these amounts are not transferable to a Registered Retirement Savings Plan.


5.1 Any queries on the foregoing should be directed by telephone to Advisory Services - Pay, Bernard Potvin 819-056-2064 or Jan Norris 819-956-2063.

Original Signed by
M.-J. Posen

Marie-Josée Posen
Personnel Products Branch
Accounting, Banking and Compensation Directorate

Reference: CJA 9006-24-1