Canada Pension Plan Changes to Begin in 2012

Significant changes to the Canada Pension Plan (CPP) will occur in January 2012 to reflect the way Canadians are living, working, and retiring. The changes will affect both employees and self-employed workers aged 60 to 70. The changes will not affect individuals who are already receiving a CPP or Quebec Pension Plan (QPP) retirement pension and remain out of the workforce.

Changes include:

  • All workers aged 60 to 65 will be required to make CPP contributions—even if they are receiving a CPP or QPP retirement pension.
  • Workers who are 65 to 70 years of age and who are receiving a CPP or QPP retirement pension will be required to contribute unless they have elected to stop their CPP contributions.
  • Self-employed workers will have to complete Schedule 8, CPP Contributions on Self-Employment and Other Earnings, when they file their income tax and benefit return for 2012 or any subsequent year.

These changes reflect the fact that the average retirement age in Canada has been increasing.

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