What is the relationship between the Desjardins Group Pension Plan (DGPP) and my RRSP contribution?
On your T4 tax slip, you will find the pension adjustment (PA) which represents the pension accumulated in the DGPP for a given year. The pension adjustment reduces the maximum amount you can contribute to an RRSP
for the following year.
Pension adjustments make sure that all employees at similar income levels will have access to comparable tax-assisted retirement savings, regardless of what type of retirement savings plan they belong to.
The following table shows an example of how the 2024 RRSP deduction limit is calculated for an employee whose total income for 2023 is their Desjardins salary of $65,000.
Example: 2024 contribution room
|
Unused RRSP contribution room carried over from 2023
|
$411
|
Plus: 18% of income earned in 2023 up to $30,780 (18% X $65,000 for example)
|
$11,700
|
|
Minus: PA for 2023 (9 X 2023 DGPP credited pension – 600) |
- $8,175
|
|
Contribution room for 2024 |
$3,525
|