Your pension is an important part of your retirement security. With the benefit improvement that was announced in June, eligible members will now get even more from their pension. With this good news in mind, it’s important to understand how this impacts your registered retirement savings plan (RRSP) contribution room in the future.

What you need to know

If you received the 2024 benefit improvement, you will be notified this fall about a past service pension adjustment (PSPA). You will also receive a T215 tax slip to reflect the increase to your lifetime pension. Copies of these documents can be viewed online, using the My Mailbox tool on HOOPP Connect.

This PSPA reduces your RRSP deduction limit for 2025 and, in turn, the amount you will be eligible to contribute to your RRSP next year. Be mindful of your revised RRSP contribution room and adjust your contributions accordingly.

In 2025, you’ll be able to check your RRSP contribution room by:

• visiting My Account on the Canada Revenue Agency (CRA) secure site
• calling the CRA Tax Information Phone Service (TIPS) at 1-800-267-6999
• reviewing the 2024 Notice of Assessment you receive from the CRA after you file your 2024 tax return

Why you may receive a PSPA

Your employer reports a pension adjustment (PA) for you annually on your T4. The PA reflects the value of the pension benefit earned that year and impacts the amount of money you can contribute to your RRSP.

If your pension has been improved on a past service basis, HOOPP will report a PSPA to the CRA. This PSPA will be a result of the increase to your lifetime pension for service in 2023. Generally, a PSPA represents the difference between the revised PA and the PA originally reported for you.

We’re here to help

If you have any questions about this PSPA or your HOOPP pension, please contact our Member Services team at 416-646-6445 or toll-free at 1-877-43HOOPP (46677), Monday to Friday, 8 a.m. to 5 p.m. EST.