Frequently Asked Questions

Does McMaster University match my pension contributions?

The Ontario Pension Benefits Act and its Regulations stipulate certain funding requirements for defined benefit pension plans (such as McMaster's Hourly and Salaried Pension Plans). Based on these Regulations, McMaster contributes into the Fund each year the amount required to fund fully the current service cost of the Plan, as determined by the Actuary.

Can I continue to earn pensionable service if I take a leave of absence?

In most instances, you can continue to contribute to the Plan. However, you must provide Human Resources Services with post-dated cheques for each month that you are on a leave, dated for the 15th of each month.

What is a Pension Adjustment ("PA")?

If you are a member of a registered pension plan, your PA represents Canada Customs & Revenue Agency's estimate of the value of your pension earned in the calender year. The PA reported on your T4 reduces your RRSP contribution room for the following year.

What is a Pension Adjustment Reversal (PAR)?

Once you have made your termination election, and if you transfer your pension value out of the Plan (into a vehicle other than another registered pension plan), you may be issued a "Pension Adjustment Reversal" ("PAR"). Revenue Canada introduced the PAR for pension plan members transferring their pension entitlement out of a registered pension plan after 1996. A PAR restores lost RRSP contribution room and is the amount by which your PA's exceed the value of your pension earned over that period.

How does the transition to Rule of 85 work?

For an example of how the transition to Rule of 85 works, click here.

How are Commuted Values calculated?

For a description of how Commuted Values are calculated, click here.

For more information email: or contact your HR Advisor