If you’re a retired member, you may notice your monthly pension is different for July. This may be due to the cost-of-living adjustment, changes to income tax, or both.

Recently, the federal and provincial governments made changes to how income is taxed.

The federal government cut taxes for the lowest tax bracket. This means all Canadians will pay lower taxes, especially those with lower incomes.

In addition, several provinces changed the basic personal exemption amount, a tax credit anyone can claim. Depending on your income, you may pay more or less taxes as a result.

The federal tax cut affects all Canadians, while the provincial changes only affect people in:

• Manitoba
• Saskatchewan
• Prince Edward Island
• Nova Scotia

To align with these changes, we’ve adjusted the amount of tax deducted from your pension.

If you have any questions, contact us and we’ll be happy to help.