Tax Deduction Changes
Personal Changes

Tax Deduction Changes

Your monthly pension is taxable income. The LPF Office is required to deduct income taxes from monthly pensions.  However, you should complete the federal and provincial tax forms (TD1s) in order that the correct amount of income taxes may be deducted. 

Unless you complete the correct government forms, LPF assumes that your LPF pension is your only source of retirement income, and that you have no tax credits to claim beyond the basic personal credit.

Federal and Provincial governments adjust their tax rates sometimes twice a year. These changes affect the amounts being deducted from your pension.

To check the current tax rates, visit Canada Revenue Agency’s website. CRA offers a Payroll Deductions Online Calculator to model the tax on your pension or other income.

Reduce the federal and provincial tax deductions

If you have additional tax credits, such as a spousal credit, age credit or tuition credit, you will need to complete both a Federal TD1 and/or a Provincial TD1. Provincial tax credits are claimed on one form, and federal credits on the other. Please click here to download the applicable forms from the Canada Revenue Agency website.

Upon receiving the signed forms, LPF will adjust the amount of tax withheld from your monthly pension.

Have additional tax deducted from your pension payments

Send a signed letter to the LPF Office, which must include your full name (printed), social insurance number and the additional monthly dollar amount you want withheld, or click here to download the TD1 form from the Canada Revenue Agency website.

Every time you want to change or reduce the amount of additional tax you must send a signed letter or TD1 forms.