Pension Splitting
The Minister of Finance announced in 2006 several new tax measures relating to seniors and pensioners in his Tax Fairness Plan Tax Relief for Canadian Seniors. The splitting of eligible pensions is just one of these new measures.
The pension splitting option may be chosen when affected pensioners file their taxes in the first quarter of a given year. As the option is effective 1 Jan 2007, this means when pensioners file their income tax for the 2007 taxation year, in early 2008, the option will be available for the first time. This new option is strictly administered by the Revenue Canada Agency and there are no plans for the administration offices of eligible pension plans such as the Canadian Forces Pension Plan to administer the pension splitting option.
The administration process for pension splitting is still in the early stages of development and will continue to evolve. Please visit the Department of Finance at http://www.fin.gc.ca for up-to-date information and a list of Questions and Answers on the Tax Fairness Plan.
