Pension Adjustment - PA

DEFINITION of 'Pension Adjustment - PA'

The amount of contributions that can be made to a Registered Retirement Savings Plan (RRSP) on top of any contributions to a Registered Pension Plan (RPP) in a given year.

BREAKING DOWN 'Pension Adjustment - PA'

An individual can choose to contribute this amount to a registered plan such as a Registered Retirement Savings Plan (RRSP), or he or she can defer this amount until later years when the tax deduction will be more useful.