Pension Limits – Effective Dates

The effective date would depend on the situation:

1. Where no funds have previously vested in the arrangement, the effective date for the pension limit will be the date of the BCE (which should also be the review date used in the pension analysis).

2. Where funds have previously vested in the arrangement and the recalculation of limits was triggered by a new BCE, the effective date is the beginning of the current pension year (the new limit applies for the whole of the current year).

3. Where the recalculation of limits was triggered by a partial annuity purchase in the arrangement or a pension sharing order, then the effective date should be the start of the next pension year (the new limit does not apply to the current pension year).

4. On a routine 3 year anniversary, the effective date is the 3 year anniversary of the first pension withdrawals starting from that arrangement (not the calculation date if the 60 day window has been used).