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A certifiable PSPA will reduce a member’s RRSP contribution room for the current year (i.e., when it is processed by the CRA). The amount a member pays for past-service benefits will not likely equal the PSPA associated with the benefits because the PSPA measures the value of the past-service benefits, rather than how much it costs to pay for the benefits. A PSPA may also be triggered when the Plan benefit is improved for past service, as occurred for the benefit improvement effective January 1, 2018 and April 1, 2021 for service prior to that datethose dates. This type of non-certifiable, or exempt, PSPA does not require CRA approval and reduces RRSP room in the year after the PSPA event occurs.

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