T10 Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC)

T10 (PAR) and (PAC) slip

It is the slip completed by the RPP administrator or the DPSP trustee and used by CRA to help determine the employees RRSP deduction limit for the year.

Employees who are beneficiaries of a deferred profit sharing plan (DPSP) have a pension adjustment (PA) amount which is reported in box 52 of their T4 slip. The PA reduces the amount that the employee can contribute to a registered retirement savings plan (RRSP) in the following year. However, the PA assumes that the employee will actually receive the amounts that were contributed into the DPSP on their behalf.

A DPSP can have up to a two year vesting period before a beneficiary can receive the money that the employer contributed to the plan. If the employee leaves the plan before the vesting period, the employee forfeits the employer contributions. This means that the employee got less than the sum of the PAs that were reported to the Canada Revenue Agency (CRA). To make up the difference, the trustee will issue a pension adjustment reversal (PAR) on a T10 slip and send it to the CRA. The purpose of the PAR is to restore RRSP room in the year it is reported.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca