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Pension Adjustment - PA. DEFINITION of 'Pension Adjustment - PA'. The amount of contributions that can be made to a Registered Retirement Savings Plan (RRSP) on top of any contributions to a Registered Pension Plan (RPP) in a given year. BREAKING DOWN 'Pension Adjustment - PA'.
Adjustment of the Reduction Factor. The Adjustment of the Reduction Factor (ARF) prevents your benefits after full retirement age FRA from being reduced because of early benefits you did not actually receive due to the earnings test. It cannot lower, and will only increase, your benefits if it is applied.