Pension Adjustment and maternity leave

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
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Nortel'd
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Joined: 29 Oct 2007 11:04
Location: Ontario's black fly country

Pension Adjustment and maternity leave

Post by Nortel'd »

My daughter was on maternity leave from Mid September 2014 to Mid June 2015 and her employer contributed to her DCPP while she was on leave even though she was not earning income.

Her Pension Adjustment is the sum total of the yearly amounts placed in Corp DCPP Core Registered + Corp DCPP Basic Registered + Member DCPP Basic Registered + Member DCPP additional Registered.

If I use the YTD values listed on her December 06, 2015 pay stub ( second last pay for year), I estimate the approximate value of her PA for 2015 will total $18100 .... but ... 18% of her 2015 earned income equals only $14300.

My understanding is ... her 2016 RRSP room = (2015 Earned income x 18%) minus 2015 PA = approximately $-3800 (CRA only allows an over contribution of $2000)

Can my daughter request her company transfer at least $3800 from her Member DCPP Basic Registered to her Member DCPP Basic Non-Registered (ATSVER) a non-registered account, not included in her Pension Adjustment (PA)?
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
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