Effective January 2012, if you were under 65 and start receiving CPP, your monthly CPP retirement pension amount will have decreased 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 were 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 started 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. If you elect not to contribute, you must complete Form CPT30.
In 2012, and then again in 2014, the number of years of low or zero earnings that were automatically dropped from the calculation of the CPP retirement pension increased.
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 www.servicecanada.gc.ca