What’s Happening?

The federal government has announced a reduction in the income tax rate that applies to the first portion of your taxable income. Commencing July 1, 2025, the tax rate on income up to $57,375 will decrease from 15% to 14%. This change will be reflected in how taxes are calculated on your future pension payments.

Depending on where you live in Canada, you may also benefit from additional provincial tax changes.

What Does This Mean for You?

• The ACAW Pension Plan will automatically adjust the amount of income tax withheld from your pension payments to reflect the new tax rate. You do not need to take any action—these changes will be made for you as soon as the new rates take effect.

• As a result of the lower tax rate, you may notice a slight increase in your net pension payment beginning in July 2025.

• If income tax is not deducted from your pension payments, there will be no adjustment to your net pension amount.

If you have any questions, please contact our member services team.

Best regards,
ACAW Pension Plan Administration