Using the Pension Adjustment (PA) Calculator

A Pension Adjustment (PA) is used to determine the deemed value of a member’s accrued pension for the purposes of determining their RRSP contribution room in the following year. To learn more about PAs, visit the Canada Revenue Agency website.

Instructions

When to use this calculator

Use the PA Calculator to calculate Pension Adjustments for members of the CAAT Pension Plan who:

  • are working full-time and currently earning a pension in DBprime, or
  • were working Other than Regular Full time (OTRFT) before 2019.

For DBplus PA calculations, or PAs for a year in which a member has an interdesign transfer between DBplus and DBprime, refer to the spreadsheets available in the Employer Manual.

Who should use this calculator

The CAAT Pension Plan developed the PA calculator for use by participating CAAT Pension Plan employers only.

How to use this calculator

  1. Input the following values:
    • Year defaults to the current year and allows you to select any year after 2014 by using the drop down arrow.
    • Earnings are the member's actual (not annualized) pensionable earnings for year. Do not use a comma in your number.
    • Service is calculated as a fraction of a year to five decimal places. For a full-time member with no break in service, the total service for the year is 1.00000.
  2. Click “Calculate” to see the Pension Adjustment.

    3. The Calculation Details box shows details of your calculation and a summary of the data you entered. For a print-friendly copy of your calculation, click “Printable Calculation”.

    To start a new calculation, click “Clear”.

    To report problems with the PA Calculator, contact Employer Services at employer@caatpension.ca.

Rates used in the calculation

Benefit Entitlement (BE) formula

1.3% of pensionable earnings up to the YMPE (Year's Maximum Pensionable Earnings)
plus
2% of pensionable earnings above the YMPE

The maximum BE for 2024 is $3,610.00.

YMPE (Year’s Maximum Pensionable Earnings)

The amount of earnings on which a portion of your Canada Pension Plan contributions are made. It is calculated annually by the Canada Revenue Agency. The YMPE for 2024 is $68,500.

Pension Adjustment (PA) formula

PA = (9 x BE) - $600

The PA will be rounded to the nearest whole dollar.
For service of less than 1 year, the PA is pro-rated.