Pension relief in fed budget By RICHARD WATSON, C.A. For those taxpayers concerned about the adequacy of their pension plans, old age security, and CPP benefits on retirement, the new federal budget offers some potential relief. Currently, individuals are allowed to deduct an annual Registered Retirement Savings Plan (RR- SP) contribution equal to the lesser of 20 percent of their earned income or $5,500. If the individual belongs to a registered pension plan and the em- ployer makes contributions to the plan, the limit is reduced to $3,500. The employer can contribute up to $3,500 to the pension plan, so that maximum com- bined contributions are $7,000. It is proposed to in- crease the contribution limits to registered pension plans and/or RRSP's as follows: *1986 - $7,500 •1987 - $9,500 •1988 - $11,500 01989 - $13,500 •1990 - $15,500 These limits will, however, be restricted to 18 percent of earned income. The contribution limitations relate to combined employer/employee contributions for money purchase pension plans, Deferred Profit Sharing Plan and RRSP's. In the case of a defined benefit plan, the contribution limit is applicable to the employee's contribution only. In addition, there are provisions for members of defined benefit plans to, under certain circumstan- ces, make an additional $2,000 contribution annually to an RRSP. The new limits will, of course, provide for significantly increased retirement benefits. Fur- thermore, since these larger RRSP contributions may be made to a spousal plan, the potential for the splitting of retirement income with your spouse is greatly increased. Starting in 1991, the contribution limits will be in- dexed to the growth in the "average wage". If RR- SP contributions are not used in a year they may be carried forward for up to seven years, commencing in 1986. Although not included in the present Notice of Ways and Mepns Motion, the budget proposes to permit an RRSP to invest up to 50 percent of its assets in the shares of a Canadian-controlled private corporation. This should allow not only for more diversified RRSP portfolios but should hopefully provide for higher returns on investment. However, there is one fairly major restriction to this investment extension. Your RRSP will not be permitted to acquire shares of a Canadian- controlled private corporation which you or any of your immediate relatives control, nor even of which you are a significant shareholder, which we under- stand will mean greater than 10 percent ownership. Furthermore, the proposed changes will also provide for certain other types of investments (such as special tax-exempt small business investment corporations) but these may only be applicable to other pension plans. One consideration, however, is the budget proposal exempting capital gains from tax, up to a lifetime maximum of $500,000 in gains. This exem- ption is only available personally, and not to cor- porations or pension plans. Any capital gains realized in a pension plan will eventually be taxed at full personal rates. For this reason, individuals may still prefer to in- vest personally in shares. Any related borrowing costs will likely be deductible in the year, and the resulting gain exempt from tax, subject to the phase-in period limits. These new measures are expected to be effective for 1986. However, since they were not contained in the Ways and Means Motion, and since they are still open for "further consultation", it is difficult at this point in time to assess exactly how they will work. ASTHMA INFORMATION There is still time to register for Durham Region Lung Association's Asthma Information Series at the Whitby Public Library. This four session program begins at 7:0 p.m., Monday, Nov. 4 and will continue on Wednesday, Nov. 6, Monday, Nov. 11 and Wednesday, Nov. 13. Speakers will include a family physician, pharmacist, public health nurse and physiotherapist, who will cover topics in- cluding the physical causes of asthma, use of medications (including inhalers), allergens in the environment and various coping techniques. Registration is $10 (individual or family). For more information or registration, call Durham Region Lung Association at 723-3151. WHITBY FREE PRESS, WEDNESDAY, NOVEMBER 6, 1985, PAGE 11 Block parents, cont'd. CONT'D FROM PGE. 3 public works committee sees incineration as the long-term solution to waste management in Durham Region. Edwards, while he didn't discuss the sub- ject at last week's meeting, also favors the exploration of waste treatment alternatives to landfilling. Although the two in- cumbents' positions ap- pear similar, Emm recently supported the region's proposal to en- ter into a new landfill agreement with Metropolitan Toronto, while Edwards opposed it. Housing Both Edwards and Gartshore stressed the need for low income housing development accompanying sub- division development. As a member of the region's social services committee, Edwards said he has worked ac- tively to accommodate the temporary and long- term housing needs of low-income residents. Small Town Feeling For Edwards, main- taining the town's small town character is of tan- tamount importance. In encouraging growth, the town must guard again- st the destruction of the indigenous charm of the area, he warned. The absence of clear- cut differences between the candidates' views will likely swing the contest around to per- sonalities. All three worked hard Wed- nesday promoting their respective images. Emm has settled on a folksy down home image. He told voters last week that he lear- ned what ratepayers were thinking by chat- ting with them while delivering eggs from his farm. Edwards emphasized the caring side of his nature, as evidenced by his work in the field of social services. Gartshore, in con- trast, projected a tough forthright image. Voters will always know how Gartshore stands on issues, he assured them, though "they may not always like it." ST. ANDREW'S DANCE The Canadian Scottish Club of Whitby will hold their St. Andrew's Day dance on Nov. 23 at 8 p.m. in the Masonic Temply, Cochrane St. A cold buffet will be served at 11 p.m. Tickets are $8 per person for non- members and are available by calling 728- 3012. CONT'D FROM PGE, 8 common to residents of smaller places such as Brooklin or Whitby. The goal of Block Parents everywhere is to provide a safe place for children or adults to go in cases of emergency and to act as a deterrent to possible abductors. Being a Block Parent is not a lot of work. All it requires is a sign and a window. When a Block Parent is at home and available, he puts the sign in the window. Whenever a child or anybody else is in trouble he should be able to go to that person's home for assistance. The aspect of Block Parents acting as a deterrent to criminals is probably one of the most important ones. All Block Parent applications are processed by Police to make sure an applicant bas no crimes Our Semi-Annual Custom Cover Sale is your opportunity to buy sofas, loveseats and chairs at very special prices. Beautifully constructed with solld hardwood frames frames and impeccably tailored in your choice of 100% cotton fabrics with outline quilting. SOFA S895 LOVESEAT $795 CHAIR s445 'r L A ~Z~iJ!Z~ MoreTans Waterbeds.. WHITBY- If WHITBY STORE -pfNDAS - 1540 DUNDAS ST. E. Opposite w aocDept.Store 579-4300 IAI' 51 1 Tr. kipic TUD(I I flwi WE'RE THE NEIGHBOURHOOD PROFESSIONALS S w. 149 Brock St. N.,'Whitby GOLD JACKET REALTY LTD. 668-6221 RESTAURANT & PIZZERIA BUS. Thriving bus. in shop. mail & office complex. Excel. luncheon trade. No early morn or late evenings. Fully lic. For further info call Dave Fielden 668- 6221, 985-9421. related to children on his record. "If someone has a minor theft charge against him it's not going to stop him from being a Block Parent". Block Parents includes educating children to the idea of what a stranger is. "We don't want to scare them or make them think that everybody on the street is out to get them. We just want to make them aware". Although Block Parent programs in both Brooklin and Whitby have been successful, more Block Parents are always needed. More information on becoming a Block Parent can be obtained from Heather Bray 655-3334 or Carol Amero 668-4812. EDITOR'S NOTE: Debbie Bennett is the public relations officer of the Whitby-Brooklin Block Parents.