5-903213
Dear Sir:
Re: Contributions under the Public Service Superannuation Act
This is in reply to your letter of November 5, 1990 in which you requested an opinion on whether or not
19(1)
The regulations under Bill C-52 are still in draft, but based on these draft regulations we can make the following general comments with respect to your particular circumstances.
The PAR is determined in respect of an individual who terminates membership in all registered pension plans ("RPPs") of an employer before beginning to receive periodic payments from the RPP. The PAR restores the registered retirement savings plan (RRSP) contribution room where an individual receives a termination benefit under a defined benefit RPP that is less that the total amount of the pension adjustments (PAs) and past service pension adjustments (PSPAs) previously reported for the individual by the employer in respect of those defined benefits.
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The minimum contribution limit to an RRSP is available to All individuals and is defined under the money purchase limit in section 147.1(1) of the Act and is calculated as follows: for 1991 the P.A. is deducted from the lesser of 18% of your 1990 earnings and $11,500. This deduction is only available on the money purchase of an RRSP.
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We trust the above comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate