Calculation of the pension in 2014 in compliance with the Income Tax Act

January 8, 2014

Some retirees will notice that the amount of their pension dropped slightly in January, and this is completely normal. In compliance with the Income Tax Act, taxes deducted at source on retirement pensions will be higher in 2014.

Previously, an employment tax credit was applied to pensions, but retirees do not have the right to this credit. Some retirees will therefore have to reimburse these taxes that were not deducted in their annual tax return. The Commission de la Construction du Québec (CCQ) has adjusted its calculation method for the 2014 fiscal year and is no longer applying this tax credit, which explains the slight drop in the net amount of monthly pensions.

For more information concerning the employment tax credit, consult the Web sites of Revenu Québec and the Canada Revenue Agency.