2014 contribution reporting deadlines; 2015 contribution limits and YMPE/MPE

December 1, 2014

Please review the following important deadlines and changes that may affect plan sponsors.  

The year-end is fast approaching! Please ensure contributions are submitted for the 2014 calendar year by December 31st, 2014 to take full advantage of all tax deferral opportunities.


  • Due to the early closing of the Toronto Stock Exchange (TSX) on Wednesday, December 24th, 2014, the cut-off time for same day transactions will be 1:00 p.m. ET. Transactions made after 1 p.m. ET will be processed on the next business day, Monday, December 29th, 2014.
  • The deadline to submit RRSP contributions for the March to December 2014 receipt period is December 31st, 2014. Contributions submitted via the Plan Sponsor Services Website by an electronic file upload must be received by 2:00 p.m. ET.

2014 Overcontribution Deadline
Any employer/employee overcontribution/administration errors made in 2014 to Deferred Profit Sharing Plans (DPSPs) or Defined Contribution Pension Plans (DCPPs) must be reported to Sun Life Financial before December 31st, 2014, to avoid tax implications.

The Canada Revenue Agency (CRA) shows no leniency to plan sponsors who are not aware of the contribution limits or have not monitored the contribution limits as they should.

Overcontributions/Administrative errors made to Deferred Profit Sharing Plans (DPSPs) in 2014
If you notify us about an overcontribution/administrative error before the end of 2014, we'll refund the excess amount to you. We don't need approval from the CRA if the plan text provides for the refund (either as a specific plan amendment or if the plan has been amended using CRA Form EP97-10).

If you don't notify us and the overcontribution/administrative error isn't discovered until 2014, we must issue you a T4A slip and withholding tax will apply.

Overcontributions/administrative errors made to Defined Contribution Pension Plans (DCPPs) in 2014
If you notify us about an employee or employer overcontribution/administrative error before the end of 2014, plan sponsors may:

  • Make an adjustment to future contributions for 2014, or
  • Need to get approval from the pension regulator for a refund on the excess amount, depending on where the plan is registered. We are not required to issue a T4A slip to plan sponsors or your plan members, and withholding tax will not apply.

If you don't notify us and the over-contribution/administrative error isn't discovered until 2014:

  • A T4A slip will be issued to the plan member for any refund for an employee overcontribution/administrative error, and to the plan sponsor for any refund of an employer overcontribution/administrative error. Plan sponsors may need to get approval for the refunds from the pension regulator, depending on where the plan is registered. Special tax withholding rates will apply.

Please make any necessary adjustments to plan sponsor contributions before the end of 2014 to avoid the necessity of withholding taxes and issuing a T4A slip in the New Year. Sun Life Financial may charge a fee, as applicable.

Registered plan contribution dollar limits and year’s maximum pensionable earnings
Effective January 1st, 2015 the registered plan dollar limits will increase as follows:

  • Defined Contribution Pension Plan (DCPP) – $25,370
  • Deferred Profit Sharing Plan (DPSP) – $12,685
  • Registered Retirement Savings Plan (RRSP) – $24,930

In addition, the maximum pension limit for a Defined Benefit Pension Plan (DBPP) will be increased to $2,818.89 per year of service.

What does this mean to plan sponsors?
If plan rules state that contributions over and above the DCPP, RRSP or DPSP contribution limits spill over into another product (usually a non-registered vehicle), the spills will now occur at a higher dollar limit, effective January 1st, 2015.

2015 YMPE and MPE limits
The yearly maximum pensionable earnings (YMPE) under the Canada Pension Plan (CPP) or maximum pensionable earnings (MPE) under the Quebec Pension Plan (QPP) for 2015 will be $53,600, up from $52,500 in 2014. Contributors who earn more than $53,600 in 2015 are not required or permitted to make additional contributions to the CPP/QPP. The basic exemption amount for 2015 remains at $3,500. Individuals who earn less than that amount do not need to contribute to the CPP/QPP.

Under the CPP, the employee and employer contribution rates for 2015 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%. The maximum employer and employee contribution to CPP for 2015 will be $2,479.95 and the maximum self-employed contribution will be $4,959.90. The maximums in 2014 were $2,425.50 and $4851.00 respectively.

Under the QPP, the contribution rate has been increased from 10.35% to 10.50% for 2015, which corresponds to a contribution rate of 5.25% for the employee and 5.25% for the employer. The maximum annual contribution to be withheld for any employee has therefore been increased from $2,535.75 to $2,630.25.  

TFSA contribution limits for 2015
The annual TFSA contribution limit for 2015 remains unchanged at $5,500.

Please contact your Sun Life Financial Group Retirement Services representative.