Can someone please explain the following in layman's terms
taken from CRA website Business section: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... r-eng.html"The amount that is eligible for transfer under section 60(j.1) of the Income Tax Act is limited to:
$1,500 for each year or part of a year before 1989 of that employment in which none of your contributions to the RPP or deferred profit sharing plan (DPSP) were vested in the employee's name when you paid the retiring allowance. To determine the equivalent number of years of vesting, refer to the terms of the particular plan. The number can be a fraction."
taken from CRA website Individual section: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... l-eng.html"The eligible part is:
You can also transfer an additional $1,500 for each year or part of year of service before 1989 in which you had earned no pension or DPSP benefit from employer contributions that either vested in you at the time of payment or that were previously paid to you."
1) When they say "vested" do they mean actually paid out to the employee, in other words the employee received pension payments or just that the contributions became truly "owned" by the employee?
2) Would this be up to the companies pension plan administrator to calculate? IE: how would an employee know how many years of pension contributions were vested to them prior to 1989?
Thanks so much for your help