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Quiz: Pension Adjustment Reversal (PAR)

7 questions

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1 A member retires from a defined benefit plan. Does a pension adjustment reversal arise? No — retirement does not give rise to a pension adjustment reversal Yes, but only where the pension is commuted Yes, calculated on the difference between the pension and the PAs reported Yes — a PAR arises whenever membership ends

Answer key unconfirmed — rests on 2 unverified claims.

2 By when must Form T10 be filed? With the T4 information return for the year Within 60 days after the end of the calendar quarter in which the termination occurred By the last day of February following the year of termination Within 60 days of the termination

Answer key unconfirmed — rests on 3 unverified claims.

3 A member expects to receive money when her PAR is processed. What should she be told? A PAR restores RRSP contribution room and does not create a payment or refund The PAR is credited against her next year's tax payable The PAR is paid out as a refund of over-reported adjustments The PAR is paid into her RRSP by the plan administrator

Answer key unconfirmed — rests on 1 unverified claim.

4 When does a PAR restore RRSP room? Retroactively, in the years the pension adjustments were reported When the member next files a return In the following year, mirroring the pension adjustment In the year the PAR arises

Answer key unconfirmed — rests on 1 unverified claim.

5 An administrator realises a PAR is months past its filing deadline. What is the effect on the member? The PAR still restores the member's RRSP room when CRA processes it The member's room is lost for that year The member must apply to CRA to have the room restored The room is restored only from the date of late filing

Answer key unconfirmed — rests on 1 unverified claim.

6 Which arrangements can give rise to a pension adjustment reversal? Select all that apply.

Select all that apply.

Defined benefit provisions Money purchase provisions Deferred salary leave plans Retirement compensation arrangements Deferred profit sharing plans

Answer key unconfirmed — rests on 2 unverified claims.

7 Whose obligation is it to determine and file a PAR? CRA's, from the information already reported The plan administrator's The member's former employer's, separately from the plan The member's, on their return for the year

Answer key unconfirmed — rests on 1 unverified claim.

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