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Quiz: Pension Adjustment (PA)

11 questions

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1 Under a defined benefit provision, how is the pension adjustment determined? The actuarial value of the benefit accrued, as determined by the plan actuary Nine times the member's compensation, less the PA offset The employer's contributions to the plan for the member Nine times the member's benefit entitlement for the year, less the PA offset

Answer key unconfirmed — rests on 1 unverified claim.

2 Which of these components of the defined benefit PA formula stay the same from year to year? Select all that apply.

Select all that apply.

The money purchase limit used in the PA cap The defined benefit limit The multiplier applied to benefit entitlement The PA offset

Answer key unconfirmed — rests on 4 unverified claims.

3 A member asks why a pension adjustment reported for last year has reduced this year's RRSP room rather than last year's. The PA reduces the limit two years after the year it relates to The PA reduces the limit for whichever year the member claims the deduction The PA reduces the limit for the year it relates to, so the notice is in error A pension adjustment for one calendar year reduces the RRSP deduction limit for the following year

Answer key unconfirmed — rests on 1 unverified claim.

4 A member had no benefit accrual and no contributions this year. What must the administrator report? Nothing — no PA arises A negative pension adjustment reflecting the shortfall The prior year's PA, carried forward A nil pension adjustment must still be reported

Answer key unconfirmed — rests on 2 unverified claims.

5 Where is the pension adjustment reported for a member who has a PA but receives no T4? Form T215 Form T10, with a T10 Summary Box 52 of the T4 slip, issued specially for the purpose Box 034 of the T4A slip

Answer key unconfirmed — rests on 2 unverified claims.

6 An administrator discovers a pension adjustment reported two years ago was wrong. How is it corrected? By filing a pension adjustment reversal By filing Form T215 for the difference By adjusting the current year's PA to compensate By amending the original slip for the year in question

Answer key unconfirmed — rests on 1 unverified claim.

7 How is a member's pension adjustment capped? At the money purchase limit for the year At the lesser of the money purchase limit for the year and 18% of the member's compensation for the year At the greater of those two amounts At 18% of the member's compensation for the year

Answer key unconfirmed — rests on 3 unverified claims.

8 A plan's plan year runs from July to June. Which year does a pension adjustment relate to? The plan year in which the benefit accrued The plan year ending in the calendar year The calendar year in which the benefit accrued or the contributions were made Whichever the administrator elects, applied consistently

Answer key unconfirmed — rests on 1 unverified claim.

9 A member calls to say he calculated his own pension adjustment and it differs from box 52. Whose obligation is the PA? Shared, with CRA reconciling the two figures The employer's or plan administrator's, not the member's The plan actuary's The member's, with the administrator reporting what the member determines

Answer key unconfirmed — rests on 1 unverified claim.

10 For a specified multi-employer plan providing a defined benefit, how is the pension adjustment determined? No PA arises for a multi-employer plan By the defined benefit method, since the plan provides a defined benefit On a contribution basis, despite the plan being a defined benefit arrangement By whichever method produces the lower PA

Answer key unconfirmed — rests on 1 unverified claim.

11 When are the T4 and T4A information returns carrying pension adjustments due? On or before the last day of February following the calendar year they relate to Within 60 days of the end of the calendar year Within 60 days after the end of the calendar quarter On or before April 30 following the calendar year

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.