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The Canada Revenue Agency updated the defined benefit limit for 2025 and it has increased to $3,756.67. This means that for anyone retiring in 2025 with an IPP that:
· increases their lifetime retirement benefits according to increases in the average wage (maximum allowed under the income tax act)
· and have paid themselves the maximum pensionable amount during their careers
Have earned an annual lifetime retirement benefit of (# of yrs of service) X 3756.67
As an example, if a member has 30 years of service and retires in 2025, they will be entitled to an annual lifetime retirement benefit starting at $112,700 which is then indexed every year.
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