Changes to the Canada Pension Plan
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Changes to the Canada Pension Plan

Changes to the Canada Pension Plan
 
 
 
 
 
Changes to the Canada Pension Plan
 
 
 
 
Changes are being introduced to the Canada Pension Plan (CPP) starting January 1, 2012.
 
 
 
 
 
These changes will affect you if you are:
Aged 60 to 65 and currently receive a CPP/QPP retirement pension
Aged 65 to 70 and currently receive a CPP/QPP retirement pension
 
 
These changes will not affect you if you are currently 70 years of age or older. CPP contributions were stopped on the final pay date in the month of your 70th birthday and will not restart in 2012.
 
 
 
Note: These changes only apply to CPP contributions. There will be no changes to the administration of Quebec Pension Plan (QPP) contributions for employees whose province of employment is Quebec.
 
 
OVERVIEW OF CHANGES
 
 
The upcoming changes and action required from you, the employee, are detailed below.
 
 
Employees aged 60 to 65 who currently receive a CPP/QPP retirement pension
 
 
As per the legislation, CPP contributions were stopped on the last pay of the month before you began receiving a CPP/QPP retirement pension.
Effective your first pay in 2012, the Payroll Department must start deducting CPP contributions from your pensionable wages again. No action is required from you.
 
 
 
Employees aged 65 to 70 who currently receive a CPP/QPP retirement pension
 
 
As per the legislation, CPP contributions were stopped on the last pay of the month before you began receiving a CPP/QPP retirement pension.
Effective your first pay of 2012, the Payroll Department must start deducting CPP contributions from your pensionable wages again.
However, employees aged 65 to 70 may choose not to make CPP contributions by completing the form, CPT30, Election to Stop Contributing to the Canada Pension Plan or
 
 
 
 
Revocation of a Prior Election. You must send the original CPT30 election form to the Canada Revenue Agency (CRA) and file a copy with the Payroll Department. No CPP contributions will be deducted on pay dates following the month the form is filed.
 
 
You can download the CPT30 form from the CRA’s website:
 
 
 
 
If you choose to make CPP contributions starting January 2012, no action is required from you.
 
 
 
If you do not wish to make CPP contributions starting January 2012, you must file a CPT30 election form with the CRA and the Payroll Department in December, 2011. (Verify with Payroll as to the exact cut-off date. No forms can be dated prior to December, 2011.)
If you wish to restart CPP contributions in the future, a new CPT30 form must be filed to revoke the previous election to change your contribution status. The CPT30 form can only be used once per calendar year.
 
 
 
For example, if you file the CPT30 election form in 2012 to stop deductions, you may not file a CPT30 revocation to restart deductions until 2013.
 
 
Note: If you are aged 65 to 70 but are not receiving a CPP/QPP retirement pension, there is no change. The Payroll Department will continue to deduct CPP contributions from your earnings. You cannot opt out of CPP contributions unless you are at least 65 years of age and receiving a CPP/QPP retirement pension.
MORE INFORMATION
Details on these changes and why they are being made can be found on the CRA’s website at the following link:
 
 
 
 
Information on how to apply for a CPP retirement pension, and on how continued CPP contributions will affect you, can be found on Service Canada’s website at the following link:
 
 
 

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