When your friend, Paul Newman, quit his job at Sassy Sauce Corporation, the company's pension manager reported that Mr. Newman was subject to a past service pension adjustment (PSPA). Paul had no idea what a PSPA was and what it meant for his pension. So, he asked you to explain it to him. Which of the following statements should you give to Mr. Newman to help him understand a PSPA?

It will end up reducing RRSP contribution room for Paul

It will end up increasing RRSP contribution room for Paul

It specifies Paul's accumulated benefit entitlement resulting from the end of his employment

It will be used to calculate Paul's pension adjustment

Answer rating: 100% (QA)

The detailed answer for the above question is provided belo... View the full answer