A collective bargaining agreement provided that where a retired employee had a break in service due to a workplace injury with the employer, that retiree would receive the additional pension benefits that would have been provided to that individual under the employer’s registered pension plan had there been such pensionable service under the plan during the break.
CRA indicated:
- Such payments would be included in the retiree’s income in the year received as a superannuation or pension benefit pursuant to s. 56(1)(a)(i).
- Periodic payments from an unregistered pension plan should be reported in the “Other information” area, code 109, of the T4A rather than in Box 016, and that lump sum payments from an unregistered pension plan should be reported in Box 018, code 190, of the T4A.
- As such payments were made from an unregistered plan or arrangement, they would not be eligible for pension income splitting under s. 60.03 or the pension credit under s. 118(3).