IPP Estimated 2006 Maximum Contribution Amounts

Individual Pension Plans (IPPs) – Connected Persons*

The estimated maximum Individual Pension Plan contributions which can be made in 2006 for an IPP with past service benefits from 1991-2005 and 2006 current service contributions (rounded to next lower $100) are as follows:

Exact Age as at 01/01/2006 (years)	Past Service Liability ($)	PSPA** Past Service Pension Adjustment ($)	Maximum Net Past Service Contribution ($)	2006 Current Service Contribution (%)	Maximum Current Service Contribution ($)	Total Maximum 2006 Contribution ($)
40	283,600	250,600	33,000	18.6	19,600	52,600
41	289,000	250,600	38,400	18.9	19,900	58,300
42	294,400	250,600	43,800	19.3	20,300	64,100
43	300,000	250,600	49,400	19.7	20,700	70,100
44	305,700	250,600	55,100	20.0	21,100	76,200
45	311,500	250,600	60,900	20.4	21,500	82,400
46	317,400	250,600	66,800	20.8	21,900	88,700
47	323,400	250,600	72,800	21.2	22,300	95,100
48	329,600	250,600	79,000	21.6	22,700	101,700
49	335,800	250,600	85,200	22.0	23,200	108,400
50	342,200	250,600	91,600	22.4	23,600	115,200
51	348,700	250,600	98,100	22.8	24,100	122,200
52	355,300	250,600	104,700	23.3	24,500	129,200
53	362,000	250,600	111,400	23.7	25,000	136,400
54	368,900	250,600	118,300	24.2	25,500	143,800
55	375,900	250,600	125,300	24.6	25,900	151,200
56	383,000	250,600	132,400	25.1	26,400	158,800
57	390,300	250,600	139,700	25.6	26,900	166,600
58	397,700	250,600	147,100	26.0	27,400	174,500
59	405,200	250,600	154,600	26.5	28,000	182,600
60	412,900	250,600	162,300	27.0	28,500	190,800
61	420,700	250,600	170,100	27.6	29,000	199,100
62	428,700	250,600	178,100	28.1	29,600	207,700
63	439,900	250,600	189,300	28.8	30,400	219,700
64	450,400	250,600	199,800	29.5	31,100	230,900
65	460,000	250,600	209,400	30.1	31,700	241,100
66	494,500	250,600	243,900	32.4	34,100	278,000
67	531,500	250,600	280,900	34.8	36,700	317,600
68	571,400	250,600	320,800	37.4	39,500	360,300
69	614,300	250,600	363,700	40.2	42,400	406,100

Maximum contributions for non-connected persons who earn at least $105,250 in 2006 would be the same as those shown in the table above, however the current service contribution % does not apply.

Please note that these are the maximum amounts as at January 1, 2006 for someone born on January 1st with maximum pensionable earnings each year from 1991 to 2006. The actual amount will vary depending on the individual’s actual date of birth and earnings history. For a quotation with actual date of birth and earnings history, please use Westcoast Actuaries Inc.’s 2006 IPP On-Line Quoting System^©.

* Connected Person means a person who owns directly or indirectly 10% or more of any class of shares of a company or not dealing at arm’s length with such a person.

** PSPA amount is assumed to be transferred from the member’s RRSP or pension plan to the IPP as a qualifying transfer.

This WESTCOAST WATCH publication is for information purposes only. Every effort has been made to ensure the accuracy of the information provided herein. However, no person or firm involved in the preparation or distribution of this bulletin accepts any liability for its contents or use. Should you have any questions or wish to discuss any of the information presented, please contact us at info@WAInc.ca.