Canada Pension Plan (CPP) Changes

January 26, 2012

Effective January 1, 2012, CPP contribution rules have changed. All workers aged 60 to 64 and their employers are required to make CPP contributions, even if workers are collecting CPP. Additionally, all workers aged 65 to 70 and their employers are required to make CPP contributions, unless employee has elected to stop their CPP contributions. A CPT30 Form must be completed and provided to their employer to stop their CPP contributions. The election will take effect on the first day of the month after the employee provides the form to their employer.

There are also some changes regarding the CPP payment amounts, depending whether an individual chooses to start collecting early or late. Early payments of CPP (ages 60-64) are more punitive and late payments results in higher payment amounts.

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