LAPP - What is my Pension Adjustment? - Pension

As a member of a Registered Pension Plan, the benefits you earn under LAPP/DCPP are subject to the Income Tax Act. For every year that you are active in LAPP/DCPP, your employer will report a Pension Adjustment (PA) which represents the value allocated by the Canada Revenue Agency (CRA) to the increase in your LAPP/DCPP benefit entitlement and will reduce your Registered Retirements Savings Plan (RRSP) contribution room. When the Canada Revenue Agency (CRA) reviews your tax return, they will consider this PA in determining the amount of RRSP contribution room that will be available to you for the following year.

This information is available on your most recent T4 slip.

Please visit the CRA website for additional information.