What is new with CPP

The CPP changes resulted from a review of the CPP that federal, provincial, and territorial Finance ministers completed in 2009. Changes will gradually be introduced from 2011 to 2016

These changes do not affect Canadians receiving CPP before December 31, 2010 and remain out of work force

Starting in 2012, if you are between 60 and 70 and work while collecting CPP

  • If you are under 65 and you work in Canada while receiving your CPP retirement pension, you and your employer will have to make CPP contributions
  • Between 65 and 70, you have the option of not contributing; but if you choose to, your employer will have to do the same
  • These contributions will increase your CPP benefit through the new Post-Retirement Benefit

If you are an employee or self-employed who has contributed to the CPP and are thinking about retirement

  • Starting in 2011, you will collect a larger percentage if taken after age 65
  • If you start receiving your monthly retirement CPP in January 2012 or later: your monthly benefit will decrease by a larger percentage if taken before 65
  • You can take your CPP retirement pension without any work interruption; and a longer period of low or zero earnings may be automatically dropped from the calculation of your pension; this will likely increase your benefit amount

For more information, go to http://www.seniors.gc.ca/. Also feel free to call us today at (416) 495-1098.

The blogs posted on our website provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

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