Taxes are deducted from your monthly pension payment, similar to taxes deducted from a paycheque.
Income tax deductions are based on the personal tax information you reported to SFPP when you began collecting your pension. This includes information such as where you live, whether you collect an additional pension, or have additional income. (There is nothing to prevent you from getting paid for a job while you also receive pension payments. The amount of pension you receive will not change.)
When calculating your tax deductions, we assume your SFPP pension is your only source of income. Unless you inform us, we cannot know what your other sources of income might be, and the tax withheld is based only on that pension income. Other income could push you into a new level of taxation.
You can review the amount of tax deducted from your pension at mypensionplan.ca.
The amount of tax deducted from your SFPP pension can be adjusted if:
- you become eligible for tax credits such as disability credit, dependent support credit or tuition credit; and/or
- you receive multiple sources of income and would like more tax to be deducted.
You will need to complete a provincial or territorial TD1 form and/or a federal TD1 form, depending on the type of change you are requesting.
If information such as your home address changes, you can update that information on mypensionplan.ca or contact us. If you leave Alberta, your provincial or out-of-country tax rate will be adjusted. If you would like to claim tax credits in your new province, you can complete a new provincial or territorial TD1 form.
We recommend you speak to an accountant, tax preparer or the CRA if you have questions about tax deductions.
Your T4A is a summary of income from your SFPP pension, and it is used when you file your tax return.
T4A tax slips are mailed by the end of February every year for any pension you receive that is administered by Alberta Pensions Services Corporation. Duplicate copies can be accessed on mypensionplan.ca.
Please note that if you live outside Canada, you may receive an NR4 slip instead of the T4A.