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Changes in Canada Pension Plan (CPP)

Canadians are living longer lives. The Canada Pension Plan (CPP) is adapting to reflect how Canadians choose to live, work and retire. Changes will gradually take place from 2011 to 2016.

If you started receiving a CPP pension before December 31, 2010 and you are not working, the changes discussed herein will not affect you.

Starting in 2012, if you are between the ages of 60 to 70 and work while receiving a CPP retirement pension, the changes in CPP are as follows:

Canada Pension Plan Post-Retirement Benefit

The Post-Retirement Benefit (PRB) is a new lifetime benefit that increases your retirement income and rises with increases in the cost of living, even if you already draw the maximum pension from the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP).

Canadians working outside of Quebec who receive a CPP or QPP retirement pension will begin making CPP contributions toward the PRB on January 1, 2012. The benefit will be paid to you the following year, starting in 2013.

Employee contribution at 4.95% of pensionable earnings are mandatory for CPP and QPP retirement pension recipients aged 60 to 65. Those who are at least 65 but under 70 years of age may choose not to contribute.

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[This page was added on 13 March 2012.]