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2007-02 (REVISED)
July 23, 2007
The age limit for which an eligible member can contribute to a registered pension plan has been changed to 71 from 69. This change is retroactive to January 1, 2007.
While the federal government announced the increase earlier this year, we can now confirm how this change will impact pension reporting. Here's a summary of the transition from age 69 to 71:
| Turn 69 in… | Contributions stop and re-employment limits don’t apply… |
| 2006 or earlier | After November 30 of the year in which they turn 69 years of age. |
| 2007 or later | After November 30 of the year in which they turn 71 years of age. |
Working after retirement
Plan members will now be affected by re-employment limits for a longer period of time. The plan’s working after retirement limits apply to pensioners until November 30 of the year in which they turn 71, up from age 69. After November 30 of the year in which pensioners reach age 71, they can work in education for as long as they’d like without affecting their pension.
If you employ pensioners who turned 69 prior to 2007, this change will not affect them – they can work for as long as they’d like (i.e., unlimited re-employment).
LTIP recipients – no change
If you have employees receiving long-term income protection (LTIP) benefits, please note the age limit is still the end of the year in which they reach 69 years of age. Therefore, LTIP employees continue to accrue credit and pensionable salary until the earlier of:
- the date they cease to receive payments under the LTIP agreement;
- the date they begin receiving a pension from the TPP; or
- the end of the year in which they reach 69 years of age.
If you have any questions, please contact us.
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