Communiqué
December 21, 2006
FOR IMMEDIATE RELEASE
RRSP contributions from retroactive pay
OTTAWA - The Association of Canadian Financial Officers would like to make all public service members aware of one option for protecting some of the benefits derived from the retroactive pay pending as a result of the new collective agreement.
Those members with an RRSP can direct some or all of their retroactive pay towards their or their spousal RRSP by filing a T1213 form with the Canada Revenue Agency (CRA). The form can be found here.
This form should be sent directly to CRA for approval. Once you have received an approval letter, you must send it to your department's pay and benefits office for processing.
If you have sufficient room remaining for RRSP contributions, this process will allow you to receive your back pay without tax deductions. As we anticipate the processing of retroactive pay to begin in January, members are advised to prepare their T1213 as soon as possible.
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