How do I enter an employer defined contribution pension or group plan?
Where to find it: ACCOUNTS and INVESTMENTS
First enter the employment income in INCOMES. Then add the retirement account in ACCOUNTS and INVESTMENTS, selecting its actual plan type, such as DCPP, DPSP or GRSP. Enter its current value and investments rather than entering the account balance as a defined benefit pension income.
On the account-specific form, select the employment income associated with the plan. Enter the employee contribution percentage and the employer contribution percentage separately. For example, if you contribute 5% of salary and the employer contributes another 5%, enter 5 in each applicable field, not 10 as the employer portion. A DPSP has employer contributions only.
The linked salary and its dates drive future contributions. Without a linked employment income, the account is treated as locked-in and these contributions are not calculated. Do not duplicate the same contributions with automatic saving entries.
When employment ends, TIME MACHINE stops the contributions and applies the plan’s conversion rules. It also accounts for the plan’s effect on RRSP room or pension adjustment. Set the eventual LIF/RRIF conversion age and pension jurisdiction on the account form.