Definitions for "Pension Adjustment"
The value of pension earned in a year. It is reported in Box 52 of your T-4 and is used by Canada Customs and Revenue Agency to determine your RRSP contribution room for the tax year.
The deemed value, according to CRA, of the lifetime benefit earned by a Member in any year under a pension plan. The PA reflects the benefit accrued in the previous year. This amount reduces available RRSP contribution room in the current year.
A pension adjustment (PA) exists if contributions to a registered pension plan (RPP) have been made on behalf of a contributor. When a contributor is a member of a RPP, the PA corresponds to the contributions made to the pension plan by the employee and the employer. The PA reduces the amount that a contributor may pay into his registered retirement savings plan (RRSP). This amount is indicated on the T4 slip.
The annual increase in retirement pensions, which is generally linked to the increase in wages.