| 19(1) | 5-903204 |
| W.C. Harding | |
| (613) 957-8953 |
November 29, 1990
Dear Sir:
This is in reply to your letter of November 5, 1990 concerning RRSPs established for you and your employees.
Group RRSPs such as your are frequently established in lieu of registered pension plans. They are not, however, registered pension plan for purposes of the Income Tax Act and you do not have to calculate a pension adjustment (PA) in respect of any employer or employee contributions. It should be noted, however, that the employer's matching contributions do form a benefit from employment and must be reported as such on each employee's T4/T4A.
We hope this information will be satisfactory to your needs.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate