CPP Payment Dates<\/strong>.<\/li>\n<\/ol>\n\n\n\nRule of Working While Receiving CPP: The Post-Retirement Benefit (PRB)<\/h2>\n\n\n\n Suppose you are between the ages of 60 and 70 and choose to work while drawing a CPP retirement pension. You can make additional retirement income through the Post-Retirement Benefit (PRB):<\/p>\n\n\n\nAge<\/strong><\/td>CPP Contribution Rules<\/strong><\/td><\/tr>60-65<\/strong><\/td>CPP contributions are mandatory<\/strong> on eligible employment earnings.<\/td><\/tr>65-70<\/strong><\/td>CPP Contributions are optional<\/strong>. You can opt out by submitting CRA Form CPT30<\/strong> to your employer.<\/td><\/tr>70+<\/strong><\/td>CPP contributions stop automatically<\/strong>.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nEvery year you contribute while working, your PRB increases your total monthly benefit starting the following January for life.<\/p>\n\n\n\n
What happens to my CPP when I die?<\/h2>\n\n\n\n Your estate may receive a one-time flat-rate Death Benefit of $2,500. Additionally, your surviving spouse or common-law partner may qualify for a monthly Survivor\u2019s Pension, and dependent children under 18 (or full-time students under 25) may receive a monthly child benefit.<\/p>\n\n\n\n
Frequently Asked Questions (FAQ)<\/h2>\n\n\n\n
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How does the General Drop-Out provision protect my monthly CPP entitlement?<\/h3>\n\n\n
Service Canada automatically removes your lowest 17% of earning months (up to 8 years) from your contribution history. This ensures your periods of unemployment, school, or lower wages do not drag down your pension calculation.<\/p>\n\n<\/div>\n<\/div>\n
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What is the Child-Rearing Provision (CRP)?<\/h3>\n\n\n
If your income dropped while caring for a child under age 7, you can request to exclude those low-earning months. Thus, you can exclude 17% of the low-earning time period from your total working contribution.<\/p>\n\n<\/div>\n<\/div>\n
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What is the difference between pension sharing and credit splitting?<\/h3>\n\n\n
Pension Sharing is when a married or common-law couple living together voluntarily share a portion of their active retirement pensions to balance income and lower combined taxes. Credit Splitting is applied after a legal separation or divorce. The CPP contributions attained during the relationship are permanently divided 50\/50 between both individuals.<\/p>\n\n<\/div>\n<\/div>\n
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How does PRB or Post-Retirement Benefit work if I continue working after age 60?<\/h3>\n\n\n
If you get your CPP pension while working between ages 60 and 70, your active contributions earn you lifetime, inflation-based adjusted Post-Retirement Benefits that add a separate monthly top-up to your existing pension starting the following year.<\/p>\n\n<\/div>\n<\/div>\n
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At what age does CPP post-retirement contribution become optional vs. mandatory?<\/h3>\n\n\n
60\u201365:<\/strong> CPP contributions are mandatory while working.65\u201370:<\/strong> CPP contributions are optional, and you can file Form CPT30 to stop them.70+:<\/strong> CPP contributions are no longer required and stop permanently.<\/p>\n\n<\/div>\n<\/div>\n\n
How do early (age 60) and delayed (age 70) adjustments affect the monthly CPP pension?<\/h3>\n\n\n
Getting it early before 65 permanently reduces the pension by 0.6% per month (up to a 36% reduction at age 60). Delaying after 65 permanently increases CPP by 0.7% per month (up to a 42% boost at age 70).<\/p>\n\n<\/div>\n<\/div>\n
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Can a survivor get both own CPP retirement pension and a CPP Survivor’s Pension?<\/h3>\n\n\n
Yes, but both payments will be combined into a single monthly payment for the maximum pension cap for a single individual. You cannot simply stack two maximum pensions together.<\/p>\n\n<\/div>\n<\/div>\n
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What happens to CPP contributions made by individuals who lived or worked outside Canada?<\/h3>\n\n\n
Canada has bilateral International Social Security Agreements with more than 50 countries. These allow you to combine foreign contribution or residency periods to meet minimum eligibility rules for CPP disability or survivor benefits.<\/p>\n\n<\/div>\n<\/div>\n
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How does CPP2 affect future pensions?<\/h3>\n\n\n
Workers earning above the standard Year’s Maximum Pensionable Earnings (YMPE) pay an additional tier of contributions on earnings up to the Year’s Additional Maximum Pensionable Earnings (YAMPE). This progressively increases the overall income-replacement target of CPP from 25% to 33.33%.<\/p>\n\n<\/div>\n<\/div>\n
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How do I get an official \u201cStatement of Contributions\u201d?<\/h3>\n\n\n
You can download an official \u201cStatement of Contributions\u201d through My Service Canada Account (MSCA). This explains your lifetime recorded earnings and estimated pension amounts.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n
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