| Pension Plan (Tober Enterprises Division) |
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Tax
Considerations
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The contributions Tober Enterprises makes to the Plan on your behalf are not a taxable benefit to you. Annually, Tober Enterprises will report the contributions you make to the Plan as Registered Pension Plan contributions; this will reduce your taxable income. Additionally, Tober Enterprises will report both your contributions to the Plan and the contributions that Tober Enterprises makes to the Plan on your behalf as your Pension Adjustment (PA). Your PA determines the maximum amount you can contribute to your RRSP in the following year.
Each year, Revenue Canada advises you how much you are permitted to contribute to your RRSP; under a specified multi-employer pension plan such as the UFCW Union Pension Plan. For instance, your eligible RRSP room for 1999 is equal to 18% of your income (to a maximum of $13,500) less your PA amount as calculated above. Your retirement pension benefit is taxable income. After allowing for any exemptions available to you under the Income Tax Act, your retirement pension is subject to income tax. |
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