October 3, 2017
Notices of Reportable Eligible Retiring Allowance (ERA) were mailed by the Monitor to those whose statements indicated “Part of Your Distribution may be considered an Eligible Retiring Allowance” on line H of your Initial Distribution statement (mailed to claimants during the summer of 2017).
If you have any questions or need a correction to the form, please provide it to the Monitor using the Change Form enclosed with your Notice. Changes must be received by the Monitor by 5 pm on October 30, 2017. To access the Change Form please click here.
If you have no questions or changes there is nothing further to do at this time. The Monitor will send out ERA forms prior to tax season based on the information provided in the Notice.
If you did not receive a Notice by October 10th and believe you should have, please contact the Monitor at: firstname.lastname@example.org or 1-866-942-7177.
To summarize, in order to be eligible for the ERA you must meet all of the following three criteria:
- Your accepted claim includes either: (a) a TRA or RAP or (b) base severance or you have information on line 83 of Form B of Your Information Statement Package (mailed to former employees starting in late 2011);
- You are 71 years of age or younger as at December 31, 2017; and
- You have pre-1996 years of service.
You should consult with your tax advisor to ensure the calculation of Reportable ERA reflects your individual circumstances and to understand the effect it might have on your RRSP deductions.
In addition to $2,000 for each pre-1996 year of service, for those with service prior to 1989, the CRA advises that you may claim $1,500 for each year before 1989 if no employer contributions made to a pension plan or deferred profit sharing plan for those years have vested at the time you receive the retiring allowance. For more information please see the CRA’s explanation in Income Tax Folio S2-F1-C2, at 2.30a and 2.31c, accessible here.
Information regarding the ERA was provided in an FAQ and a webinar in the spring and can be accessed here:
- Recording of the April 27, 2017 town hall can be accessed here
- FAQ regarding the eligibility for direct transfer to RRSPs that was available for certain claimants before the June 18, 2017 can be accessed here