As Public Service pension plan members, you were informed of the amendment made to the plan that improved the pension benefits payable at age 65, for those members turning age 65 in 2008 or later. This amendment became effective in January 2008 and could reduce your registered retirement savings plan (RRSP) deduction limit for 2009.

If you make contributions to an RRSP in 2009, you may have to withdraw any contributions that are considered to be excess contributions and you may be taxed on this income. When determining the amount you can contribute to an RRSP in 2009, you should take into account the amount reported on your T215 slip, Past Service Pension Adjustment (PSPA) Exempt from Certification, issued to you in the spring of 2008. Information about your 2009 RRSP deduction limit will be indicated on your 2008 Notice of Assessment that the Canada Revenue Agency will issue to you in the spring of 2009.

If you have questions about the tax implications, you are encouraged to contact the tax office of the Canada Revenue Agency at:

1-800-959-8281

For more information on the amendment improving the pension plan, you can consult the Notice to Pensioners that was sent to affected plan members in the fall of 2007.