Tax information for retired members
Your pension is taxable income. We will deduct federal and provincial income tax from your monthly pension payment.
Income splitting and your pension
You may be able to reduce the total tax you pay by transferring part of your pension income to your spouse or common-law partner.
This process, known as income splitting, allows individuals to allocate a portion of their income to a spouse who has lower earnings. This may create tax savings for couples.
Contact CRA for more details. You may also want to speak with a financial adviser or accountant to find out if transferring part of your pension income is to your advantage.