Tax information for active members

Learn about your pension and income taxes, including what you need to know about pension adjustment amounts and your RRSP contribution limit.

Buying or transferring service and RRSP contribution room

If you are buying service or transferring service from the pension plan of a previous employer, and the past service pension adjustment is greater than your available RRSP contribution room, you may have to make a qualifying withdrawal from your RRSP.

The CRA will inform you in writing if you must make a qualifying withdrawal to transfer or buy service. If you decide not to, you must notify both the CRA and the pension plan.

In some situations, the CRA allows you to over-contribute to your RRSP. If you are considering buying service and do not have enough RRSP room available to do so, contact the CRA to find out if you are eligible.

If your past service pension adjustment is not approved by the CRA, and you are not able to make a qualifying withdrawal, you cannot buy or transfer the past service.