The Income Tax Act has recently been amended to increase the benefit limits for defined benefit registered pension plans. The previous limit in the Act of $1,722 per year of service has been increased to $1,833 for 2004 and to $2,000 for 2005, after which time it will be indexed. This note is intended to alert readers to a potential past service pension adjustment issue for plans which cannot provide the higher benefit without first being amended.

type Pension Alert - Proposed PSPA Regulations May Necessitate Speedy Plan Amendment