The Canada Revenue Agency (“CRA”) has released the 2012 limits for pension plan and retirement savings plans:

• The 2012 annual pension for the year in which a pension commences to be paid under a Defined Benefit pension plan will be limited to $2,646.67 per year of service.
• The 2012 Money Purchase (Defined Contribution) limit will be $23,820.
• The Registered Retirement Savings Plan (“RRSP”) contribution limit in 2012 was previously announced as $22,970.  In 2013, the RRSP limit will increase to $23,820.
• The Deferred Profit Sharing Plans contribution limit in 2012 is $11,910.

The CRA also announced that, for 2012, the Year’s Maximum Pensionable Earnings (“YMPE”) for the Canada Pension Plan shall be $50,100. This figure is used as the maximum earnings on which contributions to the Canada Pension Plan are payable and is also used in many pension plans to calculate employee contribution rates.

All current and historical rates are posted on the CRA Registered Plans Directorate’s website.