Amount D is the individual's PA transfer amount. This amount applies where the individual is credited with past service benefits under another defined benefit provision of an RPP in respect of a period that was pensionable service under the former defined benefit provision. The PA transfer amount will apply, for example, where past service benefits are transferred between plans when an individual changes jobs. This amount is provided to the administrator of the former plan by the administrator of the new plan the individual joined. Most provincial pension benefits legislation and the federal Pension Benefits Standard Act permit a maximum two year vesting period for pension plans.
Some provinces permit a five year vesting period.
The Income Tax Act permits up to a two year vesting period for DPSPs. Since a PAR only arises if a member terminates from the plan before full vesting, plan administrators need to make sure they have historical PA information available only for current plan members who are not vested. If the plan allows immediate vesting, information on contributions, pensionable earnings and service will still be required for PA audit purposes. We expect that most plan administrators already retain sufficient records to determine any PARs for these types of plans. Defined Benefit Plans Historical PA and PSPA information will be required back to 1990 if there are members in the plan that have been participating since this time.