Income Taxes and Living Abroad

Taxes are deducted from your monthly pension payment, similar to when you were working. Income tax deductions are based on government requirements and the personal tax information you reported to PSPP when you retired. This includes information such as where you live, whether you collect an additional pension, have additional income or are income splitting with your spouse or partner. When calculating your tax deductions, we assume that your only source of income is your PSPP pension, unless you tell us otherwise.

You can review the amount of tax deducted from your pension in Your Pension Profile.

The tax deducted from your PSPP pension can be adjusted if:

• you become eligible for tax credits, such as disability credit, dependent support credit or tuition credit; and/or
• you receive multiple sources of income and require more tax to be deducted.

Your provincial or out-of-country tax rate will be adjusted based on your address on your pension profile. Ensuring your pension profile address is current will ensure the correct taxes are being with held.

You’ll need to complete a provincial or territorial TD1 form and/or a federal TD1 form, depending on the type of tax deduction requested.

You may want to speak to an accountant, tax preparer or the Canada Revenue Agency if you have questions about tax deductions.

Your T4A

Your T4A is a summary of income from your pension plan, and it is used when you file your tax return.

T4A tax slips are posted online in Your Pension Profile, and you will be notified by email, by the end of February every year for any pension you receive that is administered by PSPP.

Living Abroad

If you move after retirement, please update your personal information online in Your Pension Profile.

If you live outside Canada, you will receive an NR4 slip instead of the T4A.

How You Receive Your PSPP Pension

You can receive your pension through direct deposit no matter where you live. Using direct deposit is convenient and means that postal disruptions will not affect when you receive your monthly pension payment. There is also no risk of mail theft.

To view your contact information, please log in to Your Pension Profile.

Income Tax Considerations

The income tax deducted from your pension varies based on government requirements and what information you have provided, especially the Canadian province, territory, or country in which you reside. Your provincial or out-of-country tax rate will be adjusted as needed.

If You Live or Intend to Live Outside of Canada

Many countries have tax agreements with the Government of Canada, which means your income may be taxed at a different rate. You can find a listing of these agreements and tax rates on the Government of Canada’s Benefits for Canadians Living Abroad page.

If the country you are moving to or live in does not have a tax treaty with Canada, your PSPP pension will be taxed at a standard 25% rate.

You will receive an NR4 instead of a T4A for tax purposes.