# RPP deductions



## GalacticPineapple (Feb 28, 2013)

Do my RPP contributions count against my RRSP deduction limit?

Do my employer's contributions to my RPP count against my RRSP deduction limit?

Apologies if this has been answered before. I didn't have any luck w/ the search function.


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## stardancer (Apr 26, 2009)

Yes, both your contributions and your employer's share count; through a complicated formula, the value of your/your employer's contributions to the RPP make up your PA (pension adjustment). On your notice of assessment, you will see where the PA comes into play in determining your contribution room for the next tax year. Note: the formula making up the PA is not dollar for dollar, although the higher your contributions, the higher the PA.


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## GoldStone (Mar 6, 2011)

To clarify, RPP contributions do not count against current year's RRSP limit. RPP contributions reduce next year's limit.

The thread right below yours goes in more detail:
http://canadianmoneyforum.com/showthread.php/16198-RRSP-contribution-limit-question


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## GalacticPineapple (Feb 28, 2013)

Clutch, thank you.


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## Eclectic12 (Oct 20, 2010)

stardancer said:


> Yes, both your contributions and your employer's share count; through a complicated formula, the value of your/your employer's contributions to the RPP make up your PA (pension adjustment).
> 
> On your notice of assessment, you will see where the PA comes into play in determining your contribution room for the next tax year. Note: the formula making up the PA is not dollar for dollar, although the higher your contributions, the higher the PA.


Actually, when digging around a couple of years ago - I found references to the PA being a lot easier to calculate than I had previously thought.

The simple version is for a defined contribution (DC) pension where the PA is the sum of the contributions (i.e. employee contribution $ + employer contribution $).

The more complicated version is for a defined benefit (DB) pension where the PA is [ ( 9 x accrued benefit) - 600 ].
http://www.milliondollarjourney.com/what-is-the-pension-adjustment-pa.htm 


So it seems that your note about not being $ for $ applies where the pension is a DB plan.


Of course if one wants to confirm this, there's CRA's guide.
http://www.cra-arc.gc.ca/E/pub/tg/t4084/t4084-08-e.html


Cheers


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