Benefits for Participants

To: All Participating School Boards and Principals

From: Howard Van Mersbergen Executive Secretary-Treasurer


Canada Customs and Revenue Agency legislation requires each employer participating in

the Canadian Christian School Pension Plan to report a Pension Adjustment (PA) for each

employee who accrued benefits under the Plan during the previous calendar year. The

PA must appear on the participant’s T4 slip, and an accompanying report must be filed

by the last day of February following the taxation year.


As in prior years, a modification to Pension Adjustment calculations may need to be

made for participants who work less than a full calendar year, including those who join

the Pension Plan during the calendar year, those who separate from employment and

those who work on less than a fulltime basis. The enclosed exhibits include information

on how to determine the Pension Adjustments for these participants.


Reporting for 2003 is required by February 28, 2004, and is based on the pension

accruals for calendar year 2003. The 2003 pension accrual is based on covered earnings

paid in calendar year 2003. Accordingly, it is necessary for each participating Board (or

its designate) to understand and complete the calculations and record keeping to ensure

accurate reporting for 2003. The reported Pension Adjustment will reduce the

participant’s overall personal RRSP contribution room dollar-for-dollar. It is therefore

important that the necessary calculations be completed accurately.


To assist you in the calculations of PAs, we have enclosed the following exhibits:

I. Pension Adjustment Formula for the Canadian Christian School Pension Plan

II. A sample calculation based on a partial year of employment

III. A sample calculation based on a full year of employment

IV. A sample calculation based on a partial year of employment

V. A sample calculation based on less than fulltime employment

Requirements for Pension Adjustments and Important T4 Slip Reporting Information

If you have any employees who received Short Term Disability or Long Term Disability

benefits in 2003, include the period of disability in calculating the Pension Adjustment.

The rate of earnings at the time of disability, not the amount of disability benefit, should

be used in the calculation.

Please note the following:

- The $600 offset in the formula still applies. Participants who transfer to/from a

school that participates in the Canadian Christian School Pension Plan will have the

$600 offset prorated. If the participant did not participate in the Plan at another

school in 2003, the $600 offset should not be prorated. Participants who work less

than fulltime will receive the full $600 offset unless they worked at a second school

participating in the Plan during 2003. See the exhibits for more information.

- If a participant terminated employment during 2003 and was not entitled to a vested

pension benefit from the Pension Plan (i.e. the participant completed less than 2 years

of membership in the Plan), the Pension Adjustment for this participant must still be

determined.

The Canadian Christian School Pension Plan registration number with Canada Customs

and Revenue Agency (0283812) must also be printed on the T-4. Instructions as to

where to print the PA and the Plan’s registration number on the T-4 are included in

CCRA’s employer’s guide that should be available from your local district tax office.


Since an historical record of Pension Adjustments must be kept, please send our office a

listing in February 2004 showing the name, social insurance number and 2003 Pension

Adjustment amount for each participant on your 2003 payroll. This information will be

used in the future to calculate Pension Adjustment Reversals and to determine if plan

design and benefit changes comply with government regulations.


If you have any employees who received Short Term Disability or Long Term Disability

benefits in 2003, include the period of disability in calculating the Pension Adjustment.

The rate of earnings at the time of disability, not the amount of disability benefit, should

be used in the calculation.


Please note the following:

- The $600 offset in the formula still applies. Participants who transfer to/from a

school that participates in the Canadian Christian School Pension Plan will have the

$600 offset prorated. If the participant did not participate in the Plan at another

school in 2003, the $600 offset should not be prorated. Participants who work less

than fulltime will receive the full $600 offset unless they worked at a second school

participating in the Plan during 2003. See the exhibits for more information.

- If a participant terminated employment during 2003 and was not entitled to a vested

pension benefit from the Pension Plan (i.e. the participant completed less than 2 years

of membership in the Plan), the Pension Adjustment for this participant must still be

determined.


The Canadian Christian School Pension Plan registration number with Canada Customs

and Revenue Agency (0283812) must also be printed on the T-4. Instructions as to

where to print the PA and the Plan’s registration number on the T-4 are included in

CCRA’s employer’s guide that should be available from your local district tax office.


Since an historical record of Pension Adjustments must be kept, please send our office a

listing in February 2004 showing the name, social insurance number and 2003 Pension

Adjustment amount for each participant on your 2003 payroll. This information will be

used in the future to calculate Pension Adjustment Reversals and to determine if plan

design and benefit changes comply with government regulations.