1. Canada’s Public Pensions
Presented by:
Triple “A” Canadian Pensions Consultants
Ifigenia Fasogiannis

2. INTERNATIONAL SOCIAL SECURITY AGREEMENTS
CANADA PENSION PLAN
OLD AGE SECURITY (OAS)
INTERNATIONAL SOCIAL SECURITY AGREEMENTS

3. Canada Pension Plan – Background
Began in January 1966
Employment-based contributions
Self-supporting
Payable outside Canada
Reviewed and revised regularly
Québec has a program with similar benefits (QPP)

4. Canada Pension Plan Benefits
Retirement pension
Post-retirement benefit
Disability benefit
Disabled Contributor Child’s benefit
Survivor benefits
Death benefit
Survivor’s pension
Surviving Child’s benefit

5. Contributions for Year 2016
Maximum Contributory Earnings:
$54,900 (Year’s Maximum Pensionable Earnings [YMPE])
- $3,500 (Year’s Basic Exemption [YBE]) = $51,400
Employee Rate: 4.95%
Amount: $2,544.30
Employer Rate: 4.95%
Self-Employed Rate: 9.9%
Amount: $5,088.60

6. CPP Statement of Contributions
View and print it from “My Service Canada Account”
Can be mailed to you upon request
SOC or SC
How many have seen their Statement of contributions?
Since cpps implementation in 1966 , cpp has kept a record of each persons erngs who have pd into the plan
, your cpp record is called your statement of contributions. This is something you would want to view and it also has the information Maintains detailed information about an individual earnings, dates and employment
Called Record of Earnings and CRA/ER supplies pension with this detailed information. You want to ensure that all your correct information is on it.
It also provides information on the approximate amounts that you would get for your rtr and dth or svr.
Contributions are paid only on annual earnings between a min and a max level. Min -3500, max- adjusted ea January based on average wage
If net earnings are below 3500, no contributions are made for that year, exemption with employer
-excess contributions will be calculated and returned when you file your income tax.
SOC sent out every 2 years to targeted groups
3 ways to access it. Mail, MSCA, and be telephone
MSCA – 4 days to get a 7 digit access code in the mail, after providing simple information, SIN, Bd

7. CPP Drop Out Provisions
Periods of CPP Disability
Periods over age 65
Periods during which children were raised up to age 7 (Child Rearing)
17% of the lowest earning years in the contributory period (calculated on remaining years)

8. Drop-Out Provisions Example:
Month after
Age 18 (1969)
Year 2016 Age 65 2 1 3 3
Contributory Period 47 Years
28 years after drop-outs
(approximate only as calculation actually uses months)
Periods of disability (2004 to 2009) 6 Years
Raising children (1974 to 1981) 7 Years
3. 17% ( = 34 years x 17%) approx. 6 Years

9. CPP – Retirement Pension
May start receiving the Retirement
pension:
Between age 60 and 65
Anytime after age 65
Must have made at least one valid contribution

10. Summary of Amendments to CPP
Gradual decrease of pre-65 adjustments factors( )
Increase of post-65 adjustment factors effective 2011
CPP recipients that continue to work & receive CPP Retirement will continue to contribute to CPP if under 65.
Contributions are voluntary if over 65 till age 70
-PRB
Eliminates the cease work or reduce earnings requirement for Early CPP Retirement
More periods of low or no earnings to be dropped from benefit calculation
% (7 yrs)
% (7.5 yrs)
% (8yrs)

11. Gradual Implementation of Changes to Adjustment Factors
Gradual decrease of pre-65 adjustment factors began in 2012:
2009
-30%
2016
2012
2013
2014
2015
-31.2%
-32.4%
-33.6%
-34.8%
-36%
notice period
Gradual reduction of pre-65 adjustment in the monthly actuarial factor for each year.
The increase of post-65 adjustment factors was implemented at a faster rate as of 2011:
Year
% (monthly reduction)
2012
0.52
2013
0.54
2014
0.56
2015
0.58
2016
0.60
2009
+30%
2013
2011
2012
+34.2%
+38.4%
+42%
notice period
The following table outlines the increase in the monthly actuarial factor for each year for post 65 adjustment factor.
Year
% (monthly increase)
2011
0.57
2012
0.64
2013
0.70 11

12. Canada Pension Plan 2016 Early CPP Retirement Table Maximum CPP retirement pension payable (age 65) in 2016 is $1,092.50
Age
when CPP starts 60 61 62 63 64
Months CPP taken early:
- 60 months
- 48 months
- 36 months
- 24 months
- 12 months
Percent that CPP will be reduced:
36%
28.8%
21.6%
14.4%
7.2%
Monthly payments: *
$699.20
$777.86
$856.52
$935.18
$1,013.84
Monthly decrease: **
$393.30
$314.64
$235.98
$157.32
$78.66
Total of payments prior to 65: ***
$41,952.00
$37,337.28
$30,834.72
$22,
$12,166.08
Make-up time in months: ****
107
119
131
142
154
Make-up time in years: ****
8.9
9.9
10.9
11.9
12.9
Break-even point is at age: **** 73 74 75 76 77

13. Pension Sharing
For couples who live together, are at least 60 years of age, and apply for or receive CPP/QPP retirement pensions:
If there is a difference in the amount of retirement pension you or your spouse/common-law partner receive, you can request to share your retirement pensions.
If only one of you is a CPP contributor, you share that one pension.
The overall benefits paid do not increase or decrease with pension sharing.

14. Credit Splitting
“Credits” may be divided upon divorce, legal annulment or separation of spouses or common- law partners
“Credits” may create eligibility or increase/ decrease entitlement to CPP benefits
Applicant’s former spouse/former partner is notified of the request in writing

15. CPP Disability Benefit Contribution requirements
must have made sufficient valid contributions to the CPP in 4 of the last 6 years; or
As of March 3, 2008, you may qualify if you have:
25 years or more of contributions; and
Made sufficient valid contributions to the CPP in 3 of the last 6 years.

16. CPP Disability Benefit Medical requirements
You must have a mental and/or physical disability that is both;
Severe: Unable to regularly pursue any substantially gainful occupation. “This means that your medical condition prevents you from doing any type of work on a regular basis”.
Prolonged: The disability is of indefinite duration or is likely to result in death.

17. Canada Pension Plan Survivor’s Benefits
Maximum Lump Sum Death benefit = $2,500
Survivor’s pension
Surviving Child’s benefit
2016 SVR Rates:
-65 $ (37.5% + Flat rate of )
+65 $ (60% of Dec’d RTR)

18. Survivor’s Benefits - Eligibility
Minimum Contribution Required
Deceased contributor must have paid into CPP for 1/3 of his/her contributory period or
10 years (whichever is less)
and
Have a minimum of 3 years of contributions
…cont’d

19. Combined Benefits Retirement pension & Survivor’s pension
Paid to Retirement pension recipients who also receive a Survivor’s pension
Maximum monthly benefit is $1, (2016)
Taxable

20. Combined Benefits Disability benefit & Survivor’s pension
Paid to Disability benefit recipients who also receive a Survivor’s pension
Maximum monthly benefit is $1, (2016)
Taxable

21. CPP Child’s Benefit
Payable to the dependent child of a deceased contributor or of a disability recipient.
Child must be under the age of 18 or between 18 and 25 and in attendance at school full time.
Child may be eligible to a maximum of 2 benefits
$ (2016 rate).

22. Financed from general tax revenues of the Government of Canada
Old Age Security
Financed from general tax revenues of the Government of Canada
OAS on solid ground – Actuarial studies
Canada’s Gross Domestic product (GDP) and individual incomes to rise
April to June 2016 rate $ p/m

23. Old Age Security Pension Background
Based on age, legal status, and years of residence in Canada
2 types of pension - Full and Partial
Pension is taxable
May be subject to OAS repayment of pension

24. OAS Residence Requirements
People residing in Canada
Must be a Canadian Citizen or Legal Resident
Must have 10 years of Residence in Canada
after age 18

25. OAS Residence Requirements
People residing outside of Canada
Must have been a Canadian citizen or a legal resident of Canada when you left Canada
Must have resided in Canada for at least 20 years after the age of 18 (can be met through one of Canada’s International Social Security Agreements)

26. Partial OAS Pension You do not qualify for a full OAS pension
1/40th of a full OAS pension for each full year of residence in Canada after the age of 18
Minimum of 10 years residence required (can be met through one of Canada’s International Social Security Agreements)
Once approved, a partial OAS pension will not be increased following additional years of residence in Canada

27. Portability To have the OAS pension paid outside Canada, you must:
Have 20 years of residence in Canada after age 18; or
Meet the 20-year residence requirement through one of Canada’s International Social Security Agreements

28. OAS Pension – Repayment of Pension
OAS pension higher-income pensioners
Net World Income from $73,304 to $119,398 (2016)
15% for residents, varies for non-residents
Based on previous year’s income
Monthly deductions from OAS pension
CRA International Tax Services Office
(Canada or U.S.)
Request to reduce OAS Recovery Tax at Source T1213(OAS)

29. Old Age Security Program Other Benefits
Guaranteed Income Supplement (GIS)
Allowance
Allowance for the survivor

30. Allowance and Allowance for the Survivor at age 65
At age 65, the Allowance and Allowance for the Survivor stop
Must apply for OAS Pension
May also qualify for the GIS

31. Portability
GIS, Allowance and Allowance for the Survivor may only be paid outside of Canada for:
The month of your departure, and
The following six months

32. Renewal of GIS, Allowance and Allowance for the Survivor
Once initial application has been made, even if income in subsequent year(s) is “too high”, will not have to renew each year provided a tax return is filed prior to April 30
If the tax return is not filed or filed too late, a renewal form is sent

33. Changes to the Old Age Security Pension (OAS)

34. Voluntary Deferral of the OAS Pension
Proactive Enrolment
Voluntary Deferral of the OAS Pension
Change in Age of OAS Eligibility 34

35. Voluntary Deferral of OAS Pension
As of July 1, 2013, individuals will be able to choose the option to defer their OAS pension by up to five years past the age of eligibility.
All individual circumstances and financial details should be considered before making a final decision to defer.
The voluntary deferral of the OAS pension could benefit those who are able to continue working and those who can afford to wait to receive an OAS pension.

36. Voluntary Deferral of OAS Pension
By deferring their OAS pension, an individual will receive an increased benefit of 0.6 % per month; 7.2% for each year up to 36% for the maximum period of 5 years.
Once the receipt of the OAS pension begins, the percentage increase will be applied to their pension permanently.

37. 2016 Budget Announcement
To increase GIS for Single Seniors by $947 per year
To restore OAS & GIS eligibility to age 65 and Allowance to age 60
To enhance the Canada Pension Plan benefits
*** (consultations will begin soon across Canada to receive input from contributors)
*** attend these consultations in your area and voice your opinion

38. International Agreements
Iceland
India
Ireland
Italy
Jamaica
Japan
Jersey and Guernsey
Korea
Latvia
Lithuania
Luxembourg
Malta
Mexico
Morocco
Netherlands
New Zealand
Norway
Philippines
Antigua and Barbuda
Australia
Austria
Barbados
Belgium
Chile
Croatia
Cyprus
Czech Republic
Denmark
Dominica
Estonia
Finland
France
Germany
Greece
Grenada
Hungary
Poland
Portugal
Republic of Macedonia
Romania
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Trinidad and Tobago
Turkey
United States
Uruguay

39. Documents That May Be Required
Birth certificate
Marriage certificate
Statutory Declaration and supporting document(s) (common-law partners)
Death certificate
Immigration document*/passport
Canadian Citizenship certificate
*CIC & SC agreement in place
Reminder! ---Apply 6 months prior to eligibility
--- Cheque delivery

40. Information seminars / workshops
Triple “A” Cdn Pensions Consultants Provide:
Accurate information
Expert advice
Information seminars / workshops
Training for Service Providers on CPP/OAS requirements and application take-up
Training for Service Providers/Employers on the Canada Pension Plan Disability & Appeals
Private consultation for individuals who need further assistance with decision making and applications
Contact us by 40