Tax considerations - College
Make a decision on buying service
Explore the factors involved when buying service and what you should consider. Buying service can potentially increase your future pension.
Tax considerations
When you buy service, the value of your pension increases. This can affect your tax situation and might change your RRSP contribution room.
The increased value of your pension counts against your RRSP contribution room for the year. If you increase your pension by buying service, you may decrease your available RRSP contribution room.
We’ll inform you about the change by providing a past service pension adjustment, which you will see on a statement that we send to you.
We encourage you to speak to an independent financial advisor to see if buying past service is the best choice for you.
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