canada pension plan and old age security overview
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This webinar is presented by Catherine Manson of Flemingdon Community Legal Services. It gives community service providers an overview of benefits and provisions of the Canada Pension Plan (CPP) and the Old Age Security Pension (OAS).TRANSCRIPT
To view this presentation as a webinar with sound visit CLEONet
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CLEONet is a web site of legal information for community workers and advocates
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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
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.
April 10, 2023
Federal Income Programs:A Brief Review
Flemingdon Community Legal Services
49 The Donway West, Suite 205
Toronto, Ontario M3C [email protected]
Catherine Manson Community Legal Worker
April 10, 2023
Sources of Income?
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
April 10, 2023
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 10, 2023
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 10, 2023
Canada Pension Plan - Retirement
April 10, 2023
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%)
Canada Pension Plan - Retirement
April 10, 2023
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 10, 2023
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 10, 2023
Pitfalls
Need I.D. documentation
Drug costs not covered
Taxable benefit
If you continue to work and earn more than yearly maximum CPP will be clawed back
Pension amount can be reduced if credit splitting with spouse who did not work or worked for a lower salary
Asset levels do not matter
Benefit unit income does not matter
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
& Advantages
April 10, 2023
Early Retirement
Decision is yours, you may want to consider: 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
To qualify you need to: 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:
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
April 10, 2023
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
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
& Advantages
April 10, 2023
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 10, 2023
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
Child Rearing Provision
April 10, 2023
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 10, 2023
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 10, 2023
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 10, 2023
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 10, 2023
I Came From Another Country
April 10, 2023
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 10, 2023
Reciprocal AgreementsAntigua and Barbuda Australia AustriaBarbados Belgium ChileCroatia Cyprus Czech RepublicDenmark Dominica EstoniaFinland France GermanyGreece Grenada Guernsey Hungary Iceland IrelandIsrael (Limited) Italy JamaicaJapan Jersey KoreaLatvia Lithuania LuxembourgMalta Mexico Morocco Netherlands New Zealand Norway Philippines Poland PortugalRomania St. Kitts and Nevis Saint LuciaSaint Vincent and the Grenadines Slovakia Slovenia Spain SwedenSwitzerland Trinidad and Tobago TurkeyUnited Kingdom United States UruguayMacedonia (not in force)
April 10, 2023
Old Age Security
April 10, 2023
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 10, 2023
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
Old Age Security (OAS)
April 10, 2023
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
Old Age Security: Spousal Allowance
April 10, 2023
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
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.)
April 10, 2023
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 10, 2023
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) 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.
April 10, 2023
Internet Resources
Service Canada (1-800-277-9914):CPP: www.hrsdc.gc.ca/eng/isp/cpp/cpptoc.shtmlwww.hrsdc.gc.ca/en/publications_resources/service_providers/public_pensions/presentation/page02.shtml (2008)
OAS: www.servicecanada.gc.ca/eng/isp/pub/oas/oas.shtmlGIS: www.servicecanada.gc.ca/eng/isp/pub/oas/gismain.shtmlVeterans Affairs: http://www.servicecanada.gc.ca/eng/audiences/veterans/index.shtmlhttp://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 10, 202333
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
2010, Community Law School (Sarnia-Lambton) Inc.
This webinar was brought to you by CLEONet
For more information visit the Social Assistance and Pensions section of
CLEONet at www.cleonet.ca
For more public legal information webinars visit:
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