Westcoast-Actuaries Inc. -

Westcoast Watch! Edition WW-2007-01

IPP Estimated 2007 Maximum Contribution Amounts

Individual Pension Plans (IPPs) – Connected Persons*

The estimated maximum Individual Pension Plan contributions which can be made in 2007 for an IPP with past service benefits from 1991-2006 and 2007 current service contributions are as follows:

Exact Age as at 01/01/2007	Past Service Liability	PSPA**	Maximum Net Past Service Contribution	2007 Current Service Contribution	2007 Current Service Contribution	Total 2007 Maximum Contribution
Exact Age as at 01/01/2007	Past Service Liability	Past Service Pension Adjustment	Maximum Net Past Service Contribution	2007 Current Service Contribution	2007 Current Service Contribution	Total 2007 Maximum Contribution
(years)	($)	($)	($)	($)	(%)	($)
40	319,184	281,000	38,184	20,684	18.6%	58,868
41	325,248	281,000	44,248	21,076	19.0%	65,324
42	331,408	281,000	50,408	21,476	19.3%	71,884
43	337,696	281,000	56,696	21,883	19.7%	78,579
44	344,096	281,000	63,096	22,298	20.1%	85,394
45	350,608	281,000	69,608	22,720	20.4%	92,328
46	357,264	281,000	76,264	23,151	20.8%	99,415
47	364,032	281,000	83,032	23,590	21.2%	106,622
48	370,928	281,000	89,928	24,037	21.6%	113,965
49	377,968	281,000	96,968	24,493	22.0%	121,461
50	385,136	281,000	104,136	24,957	22.5%	129,093
51	392,432	281,000	111,432	25,430	22.9%	136,862
52	399,872	281,000	118,872	25,912	23.3%	144,784
53	407,456	281,000	126,456	26,404	23.8%	152,860
54	415,184	281,000	134,184	26,904	24.2%	161,088
55	423,056	281,000	142,056	27,414	24.7%	169,470
56	431,072	281,000	150,072	27,934	25.1%	178,006
57	439,232	281,000	158,232	28,463	25.6%	186,695
58	447,568	281,000	166,568	29,003	26.1%	195,571
59	456,048	281,000	175,048	29,553	26.6%	204,601
60	464,704	281,000	183,704	30,113	27.1%	213,817
61	473,504	281,000	192,504	30,684	27.6%	223,188
62	482,480	281,000	201,480	31,266	28.1%	232,746
63	491,632	281,000	210,632	31,858	28.7%	242,490
64	504,480	281,000	223,480	32,691	29.4%	256,171
65	516,496	281,000	235,496	33,469	30.1%	268,965
66	555,216	281,000	274,216	35,979	32.4%	310,195
67	596,864	281,000	315,864	38,678	34.8%	354,542
68	641,632	281,000	360,632	41,578	37.4%	402,210
69	689,744	281,000	408,744	44,697	40.2%	453,441

Maximum contributions for non-connected persons who earn at least $111,111 in 2007 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, 2007 for someone born on January 1st with maximum pensionable earnings each year from 1991 to 2007. 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 2007 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.