2015 maximum deductible pension contribution limits
Each year, Canada Revenue Agency sets a maximum on how much members can claim on their tax returns for pension plan contributions. The 2015 maximum is $18,340. For detailed information on maximum deduction limits and what you must do, read our Employer Bulletin.
In the April newsletter, we began talking about the LTD Policy Validation tool that will improve how we serve you. As of June 1, you can use this tool to validate your approved group disability policy, commonly referred to as long-term disability (LTD) policy information. We know youíre probably curious about this new tool and have questions. Read on for details.
Updating info for multiple employees?
Validating one or multiple employees? Itís easy with the Member Validation tool
The Member Validation tool allows you to see if new hires are already contributing to the pension plan through another employer. And we heard from you "itís a great tool"óa speedy little gizmo when you have one or two new employees to validate. But, what if there are dozens? So, we streamlined the member validation process. Remember, you do not have to validate each new employee separately. Submitting one report for multiple employees will save you valuable time and effort.
You donít have to wait until June 30 to submit your Employee Information at Termination or Retirement (EITR) forms as most of your employees are on set contracts with salary and hours that stay the same. Send in your EITR forms for members retiring July 1 as soon as possible.
How to complete your Employee Information at Termination or Retirement forms.
What you need to do
As soon as possible, email a list of members retiring at the end of June. This list will serve as your confirmation of retirement for those members. Please include first and last name, and date of birth.
Once you have final service and salary figures, log on to the secure Employer website.
Complete a form for each terminated or retiring employee.
Email the forms to TPP@pensionsbc.ca or fax to 250 356-8977. (Note: if emailing or faxing forms, do not send originals by mail.)
Why this is important
For more information Contact Janice Chenery or Grant Denning, client service managers for Teachersí Pension Plan, at 250 953-3022 or 1 800 665-6770.
Because retirements peak at the end of the school year, and you and the Teachersí Pension Plan have a small window of time to process a high volume.
Your help ensures all retiring members receive their pension on time.
Members who are aged 71
Reminder: November 30 is the last day employees aged 71 are eligible to contribute to the plan
Do you have employees turning 71 this year? There are a few things you need to consider. Under the Income Tax Regulations, an employee must start receiving their pension no later than the end of the year in which they turn 71. This means your employees aged 71must start collecting their pension no later than December 1 of the same year. Itís also your responsibility to stop collecting contributions from these employees and reporting service or salary no later than November 30.
Your employees aged 71 can keep working without interruption, but you must terminate their employment for pension purposes. This requires submission of an Employee Information at Termination or Retirement form on or shortly after November 30 of the same year.
You have an employee born in 1944 who will turn 71 in 2015. You must stop collecting contributions for this employee effective November 30, 2015, and not report service or salary beyond that date.
Weíll send a pension estimate and Retirement Application Package to employees turning 71 in the current year. Please ensure we have their up-to-date contact information.
If you have any questions, please contact the plan. Weíll be happy to assist you.
íTis the season for the Memberís Benefit Statement (MBS) and Report to Members (R2M). Jam-packed with pertinent pension information, the MBS and R2M will be ready for you to distribute to members by June 29, 2015. Itís important to let your members know the teachersí strike last year might have affected their pensionable service. Read on to find out more.
On behalf of the board of trustees, we invite you this spring to share information on how you communicate with your employees about the value of their pension plan. Some of you will receive an email with an online survey link from Ipsos Reid. Read on for more information.
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