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The Canada Revenue Agency updated the defined benefit limit for 2026 and it has increased to $3,932.22. This means that for anyone retiring in 2026 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 3932.22
As an example, if a member has 30 years of service and retires in 2026, they will be entitled to an annual lifetime retirement benefit starting at $117,967 which is then indexed every year.
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