A few quick facts about the benefits, provisions of the Canada Pension Plan

2. Disability benefits are paid to people who are disabled and cannot work at any job on a regular basis. Children under 25 of recipients are eligible for a monthly benefit.

3. Survivor benefits are paid to a surviving spouse, estate, or dependent children. People receiving survivor and retirement benefits get them blended into one payment that’s usually lower than the combined value. Children under 25 of the deceased are also eligible for a monthly benefit.

— A maximum $2,500 death benefit can be made to an estate, surviving spouse or next-of-kin.

— The value of the retirement benefit changes depending on when you take it: The benefit amount is adjusted downward for each month you took the benefit before age 65. There is an opposite effect if you wait take the benefit after age 65.

— The program has several provisions designed to compensate for periods when someone wasn’t earning much or anything at all. As a result, retirees receive higher benefits than if those years were used to calculate how much they are owed:

1. The general drop-out provision allows retirees to exclude a period of about seven years where they had low earnings.

2. The child-rearing provision allows a retiree to exempt up to seven years that they were at home as the primary caregiver to a child under the age of seven.

— Couples can voluntarily share their CPP retirement pension. Alternatively, separated or divorced couples can equally divide their CPP contributions, even if they remarried.

— The post-retirement benefit allows Canadians who work while collecting a pension to continue to contribute to CPP and increase their benefits over time. The benefit is payable for life and increases with the cost of living.

The Canadian Press

by Canadian Press

A few quick facts about the benefits, provisions of the Canada Pension Plan

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