CPP & Old Age Security
Canada Pension Plan
Any person who has contributed to the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) is eligible to receive a pension benefit once they retire. The amount of the benefit depends on: how much you pay into the plan, and how many years you worked.
CPP/QPP offers 3 kinds of benefits:
- Retirement benefits - for retirees
- Disability benefits - for disabled contributors and their dependent children
- Survivor benefits - for a deceased contributor's estate, surviving spouse or common-law partner and dependent children.
CPP Benefits
Maximum as of January 1, 2004
 |
|
CPP |
| Retirement Pension (at age 65) |
$814.17 |
| Disability Pension |
$992.80 |
| Death Benefit (maximum lump sum) |
$2,500.00 |
| Survivor's Pension (under age 65) |
$454.42 |
| Survivor's Pension (age 65 and over) |
$488.50 |
| Children of Deceased or Disabled Contributor |
$192.68 |
Combined Pensions |
| Survivor\Retirement (retired at age 65) |
$814.17 |
| Survivor\Disability |
$992.80 |
| Yearly Maximum Pensionable Earnings (YMPE) for year 2004 |
$40,500.00 |
Old Age Security
Old Age Security (OAS) is an income support program for Canadians over the age of 65 provided by the Government of Canada. It comprises three programs: Old Age Security Pension, a Guaranteed Income Supplement and Allowance.
An Old Age pension is available to all Canadians over the age of 65, as long as eligibility requirements are met. Individuals need to apply in order to receive an Old Age pension. If you receive it, it is considered taxable income. If you have a high income, some or all of your pension will be reduced or "clawed back" through the tax system.
A Guaranteed Income Supplement (GIS) is available to pensioners who receive little or no income other than the OAS pension. The GIS is not taxed, however, individuals must be applied for each year.
A Spouse's Allowance (SPA) is paid to the 60-64 year old spouse, common-law partner or survivor of an Old Age Security pensioner, provided eligibility requirements are met. It is also not taxed. Individuals must apply each year to receive this benefit.
OAS Benefits
January-March 2004
|
|
Old Age Security Program |
| Basic Old Age Security pension |
$462.47 |
GIS |
| Single |
$549.63 |
| Spouse of non-pensioner |
$549.63 |
| Spouse of pensioner |
$358.01 |
| Spouse of Allowance recipient |
$358.01 |
Spouse's Allowance |
| Regular |
$820.48 |
| Widowed |
$905.83 |
| OAS 15% clawback commences with an income above $59,790. The full OAS pension is eliminated when a pensioner's net income is $96,788 or above. |
For more information about Old Age Security and the Canada Pension Plan, visit the Government of Canada's Social Development website at http://www.sdc.gc.ca.
For information about the Quebec pension plan, visit http://www.rrq.gouv.qc.ca.
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