Benefits for Participants

TO: Participants Who Have Received a Lump Sum Payment

FROM: Howard Van Mersbergen, Executive Secretary-Treasurer

 

Pension Adjustment Reversal (PAR)

 

Enclosed is your copy of the T-10 Form filed with Revenue Canada that reports your Pension Adjustment Reversal (PAR).

PAR’s were introduced in the February 1997 federal budget.  A PAR is to be determined each time a lump sum settlement is made under the Canadian Christian School Pension Plan on and after January 1, 1997.  This includes participants who terminated participation prior to January 1, 1997, but where lump sum entitlements were paid on or after January 1, 1997. 

The PAR is equal to:

                                    · The total Pension Adjustments reported under the Plan since 1990;

                                       minus

                                    · The lump sum value of benefits paid on and after January 1, 1990.

PAR’s represent the restoration of RRSP contribution room.  For example, if the above formula works out to be $5,000, it means that the former participant now has an additional $5,000 of RRSP contribution room.  Refer to the enclosed information sheet for rules relating to the extension of the deadline for contributing to an RRSP.

If you have questions about how your PAR was calculated, contact the Canadian Christian School Pension Plan at (800) 635-8288, x267.  Questions about how to file your 1998 tax return or how to ask for an adjustment to your return should be directed to your tax services office.