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Changes to CPP effective January 2011
Effective January 2011, if you are 65 and start receiving CPP, your monthly CPP retirement pension amount will increase by a larger percentage. This increase will occur gradually from 2011 to 2013.
Effective January 2012, if you are under 65 and start receiving CPP, your monthly CPP retirement pension amount will decrease by a larger percentage. This decrease will occur gradually from 2012 to 2016.
Starting in 2012:
• you will not need to stop working in order to receive your CPP pension;
• if you are under 65, working, and receiving your CPP pension, you and your employer will have to make CPP contributions. These contributions will be added to your CPP benefits through a new Post Retirement Benefit in 2013; and
• if you are over 65, working and receiving your CPP pension, you can choose to make CPP contributions. Your employer will also have to make CPP contributions. These contributions will allow you to continue building your CPP Post Retirement Benefit, even if you are already receiving the maximum amount of CPP retirement pension.
In 2012, and then again in 2014, the number of years of low or zero earnings that are automatically dropped from the calculation of the CPP retirement pension will increase.
You will not be affected by these changes if you started receiving a CPP retirement pension before December 31, 2010 and you remain out of the work force.
If you want further information on the changes, you can go to the Services Canada website at http://www.servicecanada.gc.ca