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work with low-income and disadvantaged
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2010, Community Law School
(Sarnia-Lambton) Inc.
Canada Pension Plan and Old Age
Security Pension Overview
2010, Community Law School
(Sarnia-Lambton) Inc.
Please note…
The content of this webinar is based on law that
was current on the date the webinar was recorded.
CLEONet webinars contain general legal
information. They are not intended to be used as
legal advice for a specific legal problem. For more
information on how to find a lawyer or to contact
your local community legal clinic visit
www.cleonet.ca/need_legal_help
2010, Community Law School
(Sarnia-Lambton) Inc.
About our presenter…
Catherine Manson is a Community Legal Worker and Licensed
Paralegal at Flemingdon Community Legal Services with 22 years
experience in the legal clinic system. She has been giving
presentations on CPP/OAS benefits since 2009. Catherine is a
member of the ODSP Action Coalition (Co-Chair of the Train the
Trainer Committee), she is past Chair of the Toronto Region ODSP
Action Coalition.
Federal Income Programs:
A Brief Review
Catherine Manson
Community Legal Worker
Flemingdon Community Legal Services
49 The Donway West, Suite 205
Toronto, Ontario M3C 3M9
mansonc@lao.on.ca
April-13-15
Sources of Income?



April-13-15
Private

Earnings, Pensions
Federal

Employment Insurance

CPP - retirement and disability

Old Age Security, GIS/GAINS

Veterans Pensions
Provincial

Worker’s Compensation

Ontario Works

Ontario Disability Support Program
My Service Account




Online Service
Access and manage personal information for:

Income Taxes

Employment Insurance

Canada Pension Plan

Old Age Security
Requirements:

18 + years of age

Have contributed to CPP
Information Needed:

Social Insurance Number, first name, last name, date of birth

mother's last name at her birth

Personal Access Code (first time users)
April-13-15
Statement of Contributions

Outlines:

All federal benefits you might be entitled to

Number of annual insurable contributions and earnings

It is important to review it regularly (at least once every 5 years)

It is your responsibility to ensure information has been inputted
correctly

Estimate will be more accurate the closer you are to the date you
want your pension to begin
April-13-15
Canada Pension Plan - Retirement
April-13-15
Canada Pension Plan - Retirement

Basic Retirement: Age 65

Paid month after 65th Birthday

Flexible (Early Retirement): Age 60-65

Amount decreased by 0.5% for each month under age 65
(max. 30%)

Flexible: Age 65-70

Amount increased by 0.5% for each month over age 65 (max.
30%)
April-13-15
Canada Pension Plan - Retirement

Contribution requirements:

Net earnings between $3,500 and $48,300 (2011) or assessed
pension credits of spouse (Self Employed $4,435.20)

Employers contribute other half of premiums

Contributions start as early as age 18 and end at age 70

Process:

Apply 6 months in advance of your retirement

All other applications (CPP-D, Survivor, Children benefits) must be
in writing

Review your Statement of Contributions – make sure it is accurate

Benefits can be paid to you even if you no longer live in Canada
April-13-15
Canada Pension Plan - Retirement

How much will I receive?

25% of 1/12 of the average year’s maximum pensionable
earnings

Indexed to Consumer Price Index annually

Pension protected through adjustments before calculating

Example: some low-earning periods during your career are
"dropped out", so they do not reduce the amount of your
pension

Average monthly retirement pension (at age 65) in September
2010 was $504.50 (maximum $960.00 in 2011)
April-13-15
Pitfalls
&
Advantages

Need I.D. documentation

Asset levels do not matter

Drug costs not covered

Benefit unit income does not
matter

Taxable benefit


If you continue to work and
earn more than yearly
maximum CPP will be clawed
back
Spousal Survivor Benefits,
Orphan Benefits

Death Benefit up to $2500

International Payments

Reporting process is minimal

change in address

change in banking
Allowed to work to a yearly
maximum

Pension amount can be
reduced if credit splitting with
spouse who did not work or
worked for a lower salary
April-13-15

Early Retirement

Decision is yours, you may want to consider:





To qualify you need to:




Other retirement income and plans
Your health
Whether you still earn an income and contribute to the Plan
How long and how much you have contributed
Be between 60 and 64 years old
Stop working OR
Earn less than a specified amount for the previous two months
($934.17 - Maximum Monthly amount for 2010)
To Cancel:



April-13-15
Submit written cancellation within 6 months of starting CPP
All benefits received must be paid back
Must pay CPP contributions on any earnings while were receiving
pension
Pitfalls

Need I.D. documentation

No Drug costs

Inadequate benefits require
OW/ODSP top-ups and
OW/ODSP application rules

Taxable benefit

Monthly Payment does not
increase at age 65
April-13-15
&
Advantages

Asset levels do not matter

Benefit unit income does not
matter

Spousal Survivor Benefits,
Orphan Benefits

Death Benefit up to $2500

Reporting process is
minimal

change in address

change in banking

Allowed to work to a yearly
maximum
Child Rearing Provision



Qualifications:

children born after December 31, 1958

low or no earnings when raising children who were under age of
seven

eligible to receive Family Allowance or Canada Child Tax Benefits

still must meet all eligibility requirements to receive any CPP
benefit
Pension calculation will exclude periods when income either stopped
or was reduced to care for children under age 7 = increased CPP
benefits
Either spouse or common-law partner can apply for Child Rearing
Provision, but it cannot be used by both for the same period of time
April-13-15
Child Rearing Provision

Application Process:

Apply for Child Rearing Provision at the same time as you
apply for any CPP benefit

You will need to provide:

an original or certified true copy of your children's birth
certificates

proof of the date of entry into Canada for children born
outside the country

Other benefits:

Could help meet eligibility requirements for disability benefit

In the event of your death, could help meet contributory
requirements to provide benefits to your estate and survivors
April-13-15
Pension Sharing

Eligibility:

Both partners are 60 + living as spouses or common-law

One or both must have valid CPP Contributions

Benefit: if one member has had little or no contributions – the
couple may share the CPP Pension of the higher earner
April-13-15
Credit Splitting


Jan 1/78 to Dec 31/86
 Legal marriages only (no “common law” couples)
 Must have lived together at least 3 consecutive years

Marriage ended in divorce or annulment

Must apply for Credit Splitting within 36 months of divorce or
annulment
After January 1, 1987

If divorced or annulled credit splitting mandatory on receipt of
request

Spouses must have lived together for 12 or more consecutive
months

If there is a loss of benefits to both partners there will be no
credit splitting
April-13-15
Survivor’s Benefit






Eligibility:

Deceased spouse must have paid into CPP for 1/3 of
contributory period or 10 years (whichever is less)

Prove legal marriage or living common-law

Over age 35, have a dependent child or be disabled
Under age 35 with no children  benefits deferred until you apply
at age 65 or become disabled
Eligible for CPP in own name  survivor’s benefit combined with
CPP-Disability benefit into single monthly payment
Even if you remarry your survivor benefits continue
Benefits:

Under age 65: $364.85 (average) $529.09 (maximum)

Over age 65: $297.72 (average) $576.00 (maximum)
Death benefit: maximum lump-sum of $2500 to estate of
contributor
April-13-15
Child Benefits

Eligibility:

Dependent child of deceased CPP contributor or person
receiving CPP – Disability benefits

Under 18 years old or if 18 – 25 years old must be in an
acceptable educational institute full time

Monthly Benefit of $218.50 (for 2011) per month

Taxable

Must apply in writing and confirm full time attendance in school
each year
April-13-15
I Came From Another Country
April-13-15
Social Security Agreements

You must inform CPP if you have lived or worked in another country

Canada has signed International or Reciprocal Social Security
Agreements with 50 + countries

Foreign benefits vary according to each country's pension
program

If you work in Canada, contribute to CPP, and your employer sends
you to work temporarily in another country, a social security
agreement with that country might enable you to:

continue to contribute to CPP while you work in that country

have time considered as residence in Canada for purposes of
Old Age Security Program

be exempt from contributing to other country’s pension program
April-13-15
Reciprocal Agreements
Antigua and Barbuda
Australia
Barbados
Belgium
Croatia
Cyprus
Denmark
Dominica
Finland
France
Greece
Grenada
Hungary
Iceland
Israel (Limited)
Italy
Japan
Jersey
Latvia
Lithuania
Malta
Mexico
Netherlands
New Zealand
Philippines
Poland
Romania
St. Kitts and Nevis
Saint Vincent and the Grenadines
Slovenia
Spain
Switzerland
Trinidad and Tobago
United Kingdom
United States
Macedonia (not in force)
April-13-15
Austria
Chile
Czech Republic
Estonia
Germany
Guernsey
Ireland
Jamaica
Korea
Luxembourg
Morocco
Norway
Portugal
Saint Lucia
Slovakia
Sweden
Turkey
Uruguay
Old Age Security
April-13-15
Old Age Security (OAS)

Federal Program

Eligibility:

Over age 65

For full payment - lived in Canada for 40 years after turning 18

For partial payment - lived in Canada 10 years or more prior to
retirement or after reaching age 65

Permanent Resident and/or Canadian Citizen

OAS will be suspended for beneficiaries incarcerated in a
federal penitentiary for a sentence of two years or more.

OAS will be suspended for beneficiaries who are incarcerated
in provincial or territorial correctional facilities as a result of a
sentence of 90+ days once the province or territory has signed
an information-sharing agreement with Canada (HRSDC).
April-13-15
Old Age Security (OAS)

Partial Pension:

Portions of "pie" received can never be increased

Do qualify for any cost-of-living increases

Reciprocal Agreements with some countries

“3 for 1” (need 3 years of residence between ages 18 and 55
for each year of absence between 55 and 65)

OAS will only be paid for 6 months if you move to another country

OAS pension is taxable income

Pensioners who earn individual net income of $67,668 or more as
of 2011 (including OAS) have to repay part or all of their pension
benefits

Repayment amounts normally deducted from monthly
payments

Pension will stop upon death  instruct someone to notify
government
April-13-15
Old Age Security: Spousal Allowance

OAS will be topped up with Spousal Allowance even if spouse or
common-law partner not reached aged 65

Spousal Allowance stops being paid if spouse’s income above
$29,568

GIS stops being paid at $38,256
April-13-15
Guaranteed Income Supplement



Eligibility:

Must be eligible for OAS

Combined income of you and your spouse or common-law
partner cannot exceed specific annual income (Single Person:
$15,960)
Ontario Government also provides gains amount if qualify for GIS
Income Includes:






Canada Pension Plan or Quebec
Pension Plan benefits
Private pension income and
superannuation
Foreign pension income
RRSPs cashed during the year
Employment Insurance benefits
Interest on savings




April-13-15
Capital gains or dividends
Income from rental properties
Employment income minus allowable
deductions including CPP
contributions and Employment
Insurance premiums
 Subtract lesser of result of
calculation or $3,500
Income from other sources (workers'
compensation, alimony, etc.)
Appeal Process



Reconsideration of Written Notice of Decision:

Within 90 days of receiving Notice of Decision send letter to
Service Canada Regional Director of Income Security
Programs

Include: name, address, Social Insurance Number, reason(s)
for making appeal, and any new information
Appeal of Reconsideration:

Within 90 days of receiving Reconsideration Decision request
Appeal before Review Tribunal

May take 4 to 6 months before hearing scheduled

Appeal based on income may be referred to Tax Court of
Canada (whose decision is final and binding)
Appeal of Review Tribunal:

Appeal to Pension Appeal Board and Federal Courts

Can only appeal if error in law in Review Tribunal Decision
April-13-15
PENSION ACT and the Canadian Forces Members
and Veterans Re-establishment and Compensation Act

There are two separate Acts for members and their
families of the Canadian Armed Forces who are
veterans, have been injured or died due to military
service

Veterans Review and Appeal Board Act (S.C. 1995, c.
18)

April-13-15
Board has full and exclusive jurisdiction to hear, determine and
deal with all applications for review that may be made to the
Board under the Pension Act or the Canadian Forces Members
and Veterans Re-establishment and Compensation Act, and all
matters related to those applications.
Internet Resources

Service Canada (1-800-277-9914):
CPP:
www.hrsdc.gc.ca/eng/isp/cpp/cpptoc.shtml
www.hrsdc.gc.ca/en/publications_resources/service_providers/public
_pensions/presentation/page02.shtml (2008)
OAS: www.servicecanada.gc.ca/eng/isp/pub/oas/oas.shtml
GIS: www.servicecanada.gc.ca/eng/isp/pub/oas/gismain.shtml
Veterans Affairs:
http://www.servicecanada.gc.ca/eng/audiences/veterans/index.shtml
http://www.veterans.gc.ca/eng/

Service Ontario (1-800-267-8097; TTY 1-800-268-7095)
Ministry
of Community and Social Services:
www.mcss.gov.on.ca/en/mcss/programs/social/directives/index.aspx
Ontario Works:
www.mcss.gov.on.ca/en/mcss/programs/social/directives/ow_Policy_
Directives.aspx
April-13-15
Where to Find Help…
This presentation is not a substitute for legal advice.
For information about benefits or for help at anytime –

Contact your nearest Community Legal Clinic

http://www.legalaid.on.ca/en/locate/default.asp
Community Legal Education Ontario
Pamphlet – Getting Legal Help – Community Legal
Clinics in Ontario


Legal Aid Ontario – 1-800-668-8258
33
April-13-15
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2010, Community Law School
(Sarnia-Lambton) Inc.