On this page, you will find links to information recently posted to this site. The links are presented according to plan type.
For documents from previous years, please visit the What's new archive.
The Registered Plans Directorate has updated Contact RPD to reflect our new telephone numbers. You may continue to contact the RPD toll-free from Canada and the United States at 1-800-267-3100. If you are calling from outside of Canada or the United States, call us collect at 613-221-3105. The Registered Plans Directorate accepts collect calls. These new telephone numbers are effective today. Our mail and courier addresses remain unchanged.
The Registered Plans Directorate announces that the 2020 money purchase (MP) limit of $27,830, the 2020 defined benefit (DB) limit of $3,092.22, the 2021 registered retirement savings plan (RRSP) limit of $27,830, the 2020 deferred profit sharing plan (DPSP) limit of $13,915 and the 2020 year’s maximum pensionable earnings (YMPE) of $58,700.
Registered Pension Plans (RPPs)
Temporary Covid-19 relief measure for money purchase and defined benefit pension plans.
The Income Tax Regulations allows both money purchase and defined benefit plans to “prescribe” compensation for plan members during an eligible period of reduced pay as well as an eligible period of temporary absence, up to specified limits. The purpose of prescribing compensation is to allow members to earn pension benefits during these periods, and for the benefits to be based on the member’s regular compensation.
An eligible period of reduced pay is defined under subsection 8500(1) of the Regulations, and it is limited to members who have at least 36 months of employment with the employer or a predecessor employer of the employer.
In light of the Covid-19 pandemic, the Department of Finance is proposing to remove the 36 month employment requirement within this definition. In addition, wage rollbacks (a reduction in salary without a corresponding reduction in hours worked) will qualify as an eligible period of reduced pay.
Subject to any plan restrictions, this measure is intended to give a greater number of plan members, including newer employees, the opportunity to participate in their pension plans as if they were earning full salary throughout the pandemic.
It is the longstanding practice of the Canada Revenue Agency to allow taxpayers to act on proposed tax measures on the assumption that the legislation for these measures will be enacted. This measure only applies for 2020.
Temporary Covid-19 relief measure for money purchase (defined contribution) pension plans.
The Department of Finance has proposed a legislative amendment that will, for a limited time, give employers and plan members the opportunity to make contributions to their money purchase plans in 2021 and have them apply to 2020. Generally, money purchase contributions are limited to a member’s pension adjustment (PA) limit in the year the contribution is made.
In light of the Covid-19 pandemic, the Department of Finance has proposed an amendment to the Income Tax Regulations that will allow an employer or a plan member to make additional contributions, from January 1, 2021 to April 30, 2021, and have them apply to the 2020 PA calculation. This measure is intended to address plan contributions that were reduced or suspended in 2020, following the economic crisis that arose from the pandemic.
It is the longstanding practice of the Canada Revenue Agency to allow taxpayers to act on proposed tax measures on the assumption that the legislation for these measures will be enacted. A plan amendment must be submitted to the Registered Plans Directorate in order to take advantage of this measure.
Temporary Covid-19 relief measure for money purchase and defined benefit registered pension plans.
Paragraph 8502(i) of the Income Tax Regulations contains certain restrictions in relation to borrowing. For example, borrowing is limited to a maximum term of 90 days and cannot be part of a series of loans or repayments. As well, plan property cannot be pledged as security for borrowing, and long-term borrowing is restricted to borrowing to acquire income producing real property.
In light of the Covid-19 pandemic, the Department of Finance has proposed an amendment to the Regulations to temporarily suspend the 90 day limit on borrowing and the prohibition on a borrowing being part of a series of loans or repayments. The amendment would permit a registered pension plan to enter into a loan or series of loans after April 2020 as long as the loan or series is repaid no later than April 30, 2021. All other rules and conditions continue to apply.
It is the longstanding practice of the Canada Revenue Agency to allow taxpayers to act on proposed tax measures on the assumption that the legislation for these measures will be enacted. This measure only applies until April 30, 2021.
The RPD has published Newsletter 20-1, Registered Pension Plan Annuity Contract.
Temporary Covid-19 relief measure for money purchase (defined contribution) pension plans
The Registered Plans Directorate’s Newsletter 91-4R states that a money purchase (MP) provision must have terms that require employers to contribute at least 1% of the total pensionable earnings of all active members participating under the provision each year. This condition, referred to as the minimum contribution rule, is imposed under the authority of paragraph 8506(2)(a) of the Income Tax Regulations. The minimum contribution rule applies only to an MP provision of a registered pension plan in which members' benefits are provided exclusively on a money purchase basis.
In light of the Covid-19 pandemic, the Minister of National Revenue will waive the 1% rule for the remainder of 2020 if the plan is amended to suspend accruals under the plan for the year, meaning that there will be no employer or employee contributions made to the plan or provision following the plan amendment.
This measure only applies for the remainder of 2020 for plans that submit an amendment to the Registered Plans Directorate.
Temporary Covid-19 relief measure for money purchase and defined benefit pension plans
On April 29, 2020, the Department of Finance issued a comfort letter in regards to subsections 8308(4), (5), and (6) of the Income Tax Regulations related to plan members with a period of reduced services that ended in 2019.
In the case of defined benefit plans, subsection 8308(4) allows a member to elect to have the period of reduced services credited as pensionable service under the plan. The election must occur by April 30th of the year following the year in which a period of reduced services ends. Similar rules apply under subsections 8308(5) and (6) for a period of reduced services under money purchase plans. When any of these Regulations apply, plan members can have the period recognized on a current service basis, so that employers can report the period by way of a pension adjustment (PA) rather than a past-service pension adjustment (PSPA).
In light of the Covid-19 pandemic, the Department of Finance is proposing to extend the April 30, 2020 deadline to June 1, 2020, or a later date acceptable to the Minister of National Revenue, for a period of reduced services that ended in 2019. It is the longstanding practice of the Canada Revenue Agency to allow taxpayers to act on proposed tax measures on the assumption that the legislation for these measures will be enacted. Therefore, plan members can make an election under their plans, subject to any plan restrictions, on or before June 1, 2020. If a later date is required, please write to us at Registered Plans Directorate, Canada Revenue Agency, Ottawa ON K1A 0L5 providing the specific details for the delayed election, for the purpose of being "Acceptable to the Minister”.
The Registered Plans Directorate is extending the deadline to submit comments in relation to draft Actuarial Bulletin No. 4, Reasonable Methods to Apportion Assets and Actuarial Liabilities. Interested parties should provide written submissions by July 31, 2020, to RPD.LPRA2@cra-arc.gc.ca.
The Registered Plans Directorate has started a consultation process for its draft actuarial bulletin No. 4, Reasonable Methods to Apportion Assets and Actuarial Liabilities.
Organizations interested in submitting their views are invited to review the draft bulletin. We would appreciate receiving one submission per organization in order to streamline the consultation process.
Written comments should be forwarded by May 15, 2020, to RPD.LPRA2@cra-arc.gc.ca.
The Registered Plans Directorate has updated guide T4084, Pension Adjustment.
The RPD has updated section 8.1 8502(a) – Primary Purpose of the RPP Technical Manual.
The Registered Plans Directorate, together with the Financial Services Commission of Ontario and Retraite Québec, have updated the T1200, Actuarial Information Summary.
Budget 2019 proposes to prohibit individual pension plans (IPPs) from providing retirement benefits in respect of past years of employment that were pensionable under a defined benefit plan of an employer other than the IPP’s participating employer (or its predecessor employer). Any assets transferred from a former employer’s defined benefit plan to an IPP that relate to benefits provided in respect of prohibited service will be considered to be a non-qualifying transfer that is required to be included in the income of the member for income tax purposes.
This applies to pensionable service credited under an IPP after March 18, 2019.
The RPD has published the 2018 RPP Practitioners' Forum, Summary Report.
Pooled Registered Pension Plans (PRPPs)
Registered Disability Savings Plans (RDSPs)
The RPD has updated some of our webpages to include the following legislative changes:
- extending the date a qualifying family member can open an RDSP to the end of 2023 (pro forma)
- allowing nurse practitioners to sign certifications related to specified years (pro forma, RDSP Bulletins 2R3 and 4R1, specimen plan approval process webpage)
- adding a new variable for advantage tax to the non-taxable part of a DAP formula (pro forma)
- applying anti-avoidance rules (pro forma)
Registered Education Savings Plans (RESPs)
The RPD has updated the RESP Bulletin No.1R1 to include the annual educational assistance payment threshold limit for 2020.
Education Savings Week is November 17-23, 2019!
When it comes time for children to head out to college or to university, the financial aspect can be a burden and a source of stress for both students and parents. Alleviating this pressure by helping parents, especially those with modest incomes, plan for their child’s future is a key objective of Education Savings Week (ESW).
ESW raises public awareness through events about the importance of saving for a child’s post-secondary education. It also helps Canadians better understand the financial savings incentives that are available to them.
For more information on RESPs, the Canada education savings grant, the Canada learning bond and provincial grants, visit canada.ca/education-savings.
Registered Retirement Savings Plans/
Registered Retirement Income Funds (RRSPs/RRIFs)
The Registered Plans Directorate has published Questions and Answers about reducing the required minimum withdrawals from registered retirement income funds by 25% for 2020. Similar rules apply to individuals receiving variable benefit payments under a defined contribution registered pension plan or a pooled registered pension plan.
Registered Investments (RIs)
The Registered Plans Directorate has updated the list of Registered Investments available in the Canada Gazette as of December 31, 2018.
The Deferred Profit Sharing Plans webpages have been updated.
The RPD has updated the Supplementary Unemployment Benefit Plans (SUBP) webpages.
Please note that CRA registration is only required when a separate trust is being set up for the purposes of the SUBP. Registration with Service Canada is still required. For more information see SUBP - Businesses.
Tax-free Savings Accounts (TFSAs)
The Registered Plans Directorate announces the 2020 TFSA dollar limit.
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