Questions and answers about transfers of lump-sum payments

I lost my job and had my former employer transfer the amount I had paid into the company pension plan into my RRSP.  Will this affect my RRSP contribution limit?

A transfer of your registered pension plan (RPP) contributions to your RRSP could result in an increase to your current-year RRSP deduction limit. In certain circumstances, a pension adjustment reversal (PAR) restores the reduction of your RRSP deduction limit if you earn benefits under a RPP or a deferred profit sharing plan (DPSP) and then lose your entitlement to the benefits because you leave the plan before you retire.

Your plan administrator or trustee will report a PAR for you, if the amount you receive from the plan is less than the total pension adjustments (PAs) and past service pension adjustments (PSPAs) that were previously reported for you.

We will recalculate your RRSP deduction limit based on the information your former employer gives us and we will send you a notice of reassessment or a T1028, that shows the revised RRSP deduction limit.

Can I still contribute to my RRSP this year?

Yes, you can contribute to your RRSP based on your RRSP deduction limit.

You can also login to My Account for Individuals and click on "RRSP" to check your RRSP deduction limit.