If you’ve noticed that there are no pension deductions on your pay statement, it’s because the Yukon Hospital Corporation (YHC) Pension Plan is currently on a Contribution Holiday. This means that Employee and Employer contributions are temporarily suspended, with funding instead coming from the plan’s excess surplus.
What This Means for You:
- No Pension Contributions Deducted: Your pay statement will not show any pension deductions during this period.
- Higher Income Tax Deduction: Since pension contributions normally serve as a tax credit, their absence may result in a higher income tax deduction from your paycheck.
- Your T4 Will Reflect the Pension Adjustment: Your Pension Adjustment (PA) which determines the amount which can be contributed to a Registered Retirement Savings Plan (RRSP) is not impacted by the contribution holiday and will be reported in your T4 Statement.
This contribution holiday does not impact your pension benefits - the plan remains well invested and funded