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Pension Adjustments and RRSP Room

Your pension adjustment (PA) is the deemed value of benefits you have earned in a year with HOOPP.

Each year, the federal government requires your employer to calculate your PA.

If your benefits are improved retroactively – or when you purchase past service – a past service pension adjustment (PSPA) is calculated by HOOPP, to reflect the value of the new benefits you've received that year.

The government then calculates your RRSP room for that year, minus any PA and PSPA you received.

Pension Adjustment Reversals

If your membership in the Plan terminates by leaving a HOOPP employer and you choose to transfer out all of your entitlements, you may receive a pension adjustment reversal (PAR).

You'll get a PAR if the commuted value of your termination benefit, plus any refundable contributions (for service after 1989), is less than the sum of all the PAs and PSPAs you've received related to that service.

HOOPP will do the calculation if you transfer your benefits out of the Plan on termination. If you get a PAR, the government will credit you with additional RRSP room equal to the PAR amount.

It is always best to speak to an independent financial expert before making changes to your pension.