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Canada/Quebec Pension Plan Benefits

Notes

(1) This table summarizes the maximum monthly Canada Pension Plan (CPP) benefits (except

for the lump-sum death benefit) that are applicable for each of the years noted. The

rates and rules outlined herein may vary slightly under the terms of the Quebec Pension

Plan (QPP) legislation. Payments are also made to individuals outside Canada provided

all eligibility conditions are met. All of the monthly benefit amounts are indexed to the

Consumer Price Index (CPI) and adjusted annually.

(2) Retirement benefits are monthly taxable benefits paid to individuals who have made at

least one contribution to the CPP or QPP. The contributory period commences at the age

of 18 and ends when the individual takes a retirement pension, reaches the age of 70, or

dies, whichever occurs first. The contributor has the option of drawing retirement benefits

as early as age 60 or as late as age 70. The benefit is based on how much, and for how

long, the individual has contributed to the CPP and/or QPP. The age at which an individual

chooses to retire also affects the benefit amount. Contributors must apply in order to

receive CPP/QPP benefits.

Married or common-law individuals may apply to receive an equal share of the total

retirement benefits earned by both individuals. Both partners must be at least 60 years

old and both must have applied for their respective benefits. The benefit can be shared

even if only one partner has contributed in the past.

Retirement benefits received by non-residents will be subject to a 25% withholding tax;

however, this rate may be reduced by a treaty.

More information on retirement benefits is available on the Government of Canada

website at www.servicecanada.gc.ca/eng/services/pensions/cpp/retirement/index.shtml.

(3) The early penalty will increase to 0.6% (from 0.5%) per month. This change is being

phased in over five years. By 2016, individuals that choose to take their pension at age 60

will have their basic amount reduced by 36%.

For individuals that choose to continue to work after 65, the benefit rate is 0.7% per

month. Since 2013, individuals that chose to take their pension at age 70 had their basic

amount increase by 42%.

Previously, individuals that received CPP benefits and returned to work (i.e., working

beneficiaries) did not pay CPP contributions and, therefore, did not continue to build their

CPP pension. Under the existing rules, which began in 2012, taxpayers under age 65 who

work and receive a CPP retirement benefit must still make CPP contributions, which are

matched by their employers. Employed taxpayers between age 65 and age 70 can opt

to participate in the CPP to continue to build their pension, which would require their

employers to contribute as well.

2012

2013

2014

Retirement benefits

2,3

$ 986

$ 1,013

$ 1,038

Disability benefits

1,186

1,213

1,236

Survivor benefits

Under age 65

Over age 64

544

592

557

608

568

623

Lump-sum death benefit

(max)

2,500