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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 and January 1, 2023, for service prior to those 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.
Pension adjustment reversals (PARs) are designed to make the PA system fairer by restoring some RRSP contribution room to terminating members who transfer their benefits out of a registered pension plan before retirement, where the total PAs exceed the lump-sum value they receive. A PAR will result if the value of a member's termination benefit for years of service after 1989 is less than the sum of the PAs and PSPAs they received for that service.PA Calculator
HOOPP has created a PA calculator to assist employers in reporting these amounts annually