Investment · Pension & RRSP
Pension adjustment calculator.
Your pension adjustment (PA) is the T4 box 52 number that shrinks next year’s RRSP room. Enter your plan figures to see it and the room it leaves you.
For a money purchase (DC) plan the PA is simply employer plus your own contributions plus any forfeitures allocated to you. For a defined benefit (DB) plan the CRA formula is (9 × benefit earned) − $600, never below zero. The PA is subtracted from the RRSP room you would otherwise get the following year.
Inputs
Your pension adjustment
Fill the form and press Calculate.
Worked example
You earn $80,000 pensionable in a 2% DB plan, so the pension earned this year is $80,000 × 2% = $1,600 a year. DB credit = (9 × $1,600) − $600 = $13,800. You and your employer also put $5,000 each into a DC plan: credit $10,000. Total PA = $23,800. On $120,000 of earned income, 18% is $21,600 (under the $33,810 RRSP limit for 2026), so the new room is $21,600 − $23,800 = −$2,200: no new room that year.
Formula and what is covered
DC: employer contributions + member contributions + forfeitures allocated, for the year. DB: (9 × benefit earned) − $600, with a floor of zero. The CRA rounds each credit to the nearest dollar, halves up. Not covered: DPSPs, bridging benefits, past-service PAs, 1990–1994 rules and plan overriding provisions. Your T4 box 52 figure from your employer is the number that counts.
This tool flags a DC total above the year’s money purchase limit, and a benefit above 1/9 of it (the DB limit column of the CRA table). Limits used: money purchase $27,830 (2020), $29,210, $30,780, $31,560, $32,490, $33,810, $35,390 (2026); RRSP dollar limit $27,830 (2021) up to $35,390 (2027).
Sources, read 1 October 2026: CRA Pension Adjustment Guide (T4084) for both formulas, the $600 offset, rounding and the 18% overall limit; CRA MP, DB, RRSP, DPSP, TFSA limits and YMPE table for the money purchase, DB and RRSP dollar limits.
Frequently asked questions
Where do I find my pension adjustment?
On your T4 in box 52, and on your RRSP deduction limit statement from the CRA. Your employer calculates and reports it, so use this tool to understand or sanity-check it.
Why is the DB credit minus $600?
The CRA guide says the offset is meant to leave DB plan members with at least $600 of RRSP room in most cases. It has been $600 since 1997.
Can a pension adjustment be negative?
No. The CRA states a PA can be zero but is never negative, and a DB credit that calculates below zero is set to zero.
Which year does the PA reduce?
The PA for a year reduces your RRSP room for the following year, which is why 2026 contributions affect 2027 room.
Estimate only — not tax advice
Runs entirely in your browser and sends nothing anywhere. Simple unreduced plans only; your employer’s reported PA and your CRA notice of assessment override anything shown here.