2013 Nova Scotia Budget – Pension and Benefits

Registered Pension Plans (RPPS): Correcting Contribution Errors

Currently, over-contributions to an RPP can be refunded to plan members or employers if the refund is
made to avoid the revocation of the RPP. However, this refund mechanism is not currently available
where the RPP contribution limits have not been exceeded and the contribution was made as a result of a
reasonable error (e.g., where an employer made a mistake in calculating the members’ or employer’s
contribution for a particular year). The CRA can only allow such refunds on a discretionary, case-by-case
basis.

The 2013 Budget proposes to allow refunds made, in order to correct reasonable errors, without first obtaining the CRA’s approval, as long as the refund is made by December 31 of the following year.

This proposal will apply to RPP contributions made after the later of January 1, 2014 and the date of Royal Assent of the enacting legislation.