2012 CPP Changes
Who will be affected?
- Changes will affect employees aged 60 to 70.
- Changes will NOT affect people who are already receiving a CPP retirement pension AND remain out of the workforce.
- All employees aged 60 to 65 will be required to make CPP contributions even if they are receiving a CPP retirement pension.
- All employees aged 65 to 70 who are receiving a CPP retirement pension will be required to contribute unless they have elected to stop their CPP contributions.
- To elect to stop contributing to CPP, employees will have to be at least 65 years of age and do the following:
- Employees will have to complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election and send it to the Canada Revenue Agency (CRA) and give a copy to the HR Payroll department. The election will take effect on the first day of the month after the employee gives the form to HR Payroll.
- CRA has been accepting the Form CPT30 since December 1, 2011.
- CRA will only accept forms from employees who are at least 65 years old as of December 31, 2011.
- Changes to CPP retirement pension benefits began in 2011 and will continue to be phased in until 2016.
- If you are retired, or are planning your retirement, go to www.servicecanada.gc.ca/cppchanges for tools and information on how the changed to CPP retirement pension benefits may affect you.