Adding A Defined Benefit Pension

Adding a defined benefit pension can be done in the Tax & Benefits section (are you missing a pension option, see the end of this post). A defined benefit pension is a pension plan that is managed by the company/union. Investment decisions are made by the investment managers hired by the company/union to oversee the pension assets.  

Use Your Pension Statement

The easiest way to complete the defined benefit pension information is to use your most recent pension statement. Add all values in today's dollars and we will increase them for inflation in the future.

Information required typically includes:

• Start Age + x Months: Select the age (your birthday) and then the number of months after your birth month you expect to receive your pension. For example, if you expect to receive your pension the month after you turn 55, you would select: Age 55 + 0 Months.

  

• Annual Benefit Pre-65: This is the dollar amount you would expect to receive each year before the age of 65 (including bridge benefits)
• Annual Benefit Post-65: This is the dollar amount you would expect to receive each year after the age of 65
• Before Start Age: Percent Indexed To Inflation (100% = Fully Indexed): This is the percentage of inflation that your pension increases by each year before you start receiving it. Some pensions are fully indexed to inflation, in which case enter 100%. Some pensions are only partially indexed to inflation between 0% or 60% or 80%
• After Start Age: Percent Indexed To Inflation (100% = Fully Indexed): This is the percentage of inflation that your pension increases by each year after you start receiving it. Some pensions are fully indexed to inflation, in which case enter 100%. Some pensions are only partially indexed to inflation between 0% or 60% or 80%
• Percent Survivor Benefit: This is the percentage of your pension that a spouse or partner would receive after your passing. This is typically 50% to 60% but can range from 0% to 100%.
• Annual Pension Adjustment In $'s: This is the amount that your RRSP contribution room is reduced each year because you have a defined benefit pension. This can be found on your latest notice of assessment. We can help find this information as well after you upload your Notice of Assessment.

Missing A Pension Option?

The pension options in the Tax & Benefits section is based on the information you shared in your Profile. In the Profile section you can select whether or not you have a Defined Benefit (DB) Pension Plan, a Defined Contribution (DC) Pension Plan, or a Group-RRSP.

• Defined Benefit Pension Plan (DBPP)
• Defined Contribution Pension Plan (DCPP)
• Group RRSP (G-RRSP)

If you're missing a pension option it might be necessary to update your Profile.

Adding a Defined Benefit Pension can be done in the Profile section under Financial Profile. A solid green button indicates that you are eligible for a defined benefit pension in the future.