As a member of a registered pension plan, the benefits you earn under MEPP are regulated by the Income Tax Act. For every year that you are active in MEPP, your employer will report a Pension Adjustment (PA) which represents the value allocated by the Canada Revenue Agency (CRA) to increase your MEPP benefit entitlement. This PA reduces your Registered Retirement Savings Plan (RRSP) contribution room for the following year.
Additionally, if you buy prior service that occurred after 1989, a Past Service Pension Adjustment (PSPA) will be associated with the prior service you are buying. This PSPA represents the value of the additional pension you purchased and will reduce your RRSP contribution room.