The PAR, which was omitted from pension tax reform due to concerns over administrative complexity, will significantly benefit many taxpayers. Higher PARs will be generated by plans with more serious tax design flaws. Only post-1989 benefits figure in the PAR calculation, which is relatively straightforward. Terminations in 1997 and subsequent years increase RRSP contribution room in 1998 and the then current year, respectively.
Special rules apply on marriage breakdown, transfers between plan provisions of the same plan, etc.
The size of the PAR depends on the plan and the member's age. A 6 percent interest rate is assumed for commuted values.