Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
New updates to this page may be included in Today’s Headlines which is emailed to International Foundation members each business day. Inquiries regarding these updates should be directed to the Benefits Knowledge Center at the International Foundation at (888) 334-3327, option 5 or [email protected].
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CRA Updates Pension Adjustment Reversal Guidance
Oct 6, 2025, 05:00
by
Jenny Gartman
The Canada Revenue Agency (CRA) has updated its Pension Adjustment Reversal Guide providing information and examples on how to calculate a pension adjustment reversal (PAR) and a pension adjustment correction (PAC). This version reflects recent changes to legislation related to the pension adjustment correction and permitted corrective contributions. It also incorporates feedback from industry representatives to improve clarity and usability.
This guide is designed to help administrators of registered pension plans (RPPs) and trustees or employers of deferred profit sharing plans (DPSPs) calculate a PAR for plan members who quit their membership. It also helps administrators of money purchase RPPs calculate a PAC when over-contributions are removed from the plan.