Below are some noteworthy highlights of the CPP:
1. The maximum contribution to the base CPP for employers and employees in 2021is $3,166.45. If you are self-employed, the contribution is $6,332.90.
2. The maximum earnings on which the CPP applies is $61,600 for 2021.
3. If you are an actively working employee between the ages of 60 and 65, you must continue to contribute to the CPP even if you are already receiving a CPP retirement pension.
4. If you are an actively working employee between the ages of 65 and 70, you can choose to continue to contribute to the CPP or you can opt out of making these contributions.
5. Any contributions you make to the CPP, regardless of your age, will increase your CPP benefits even if you are already receiving a CPP pension benefit.
6. You will be able to receive your CPP retirement pension without any work interruption.
7. Your employer must match your CPP contributions in each of the scenarios described in (3) and (4) above. Your employer must make these contributions regardless of whether you are already receiving a CPP pension benefit.
1.The value of the Old Age Security (“OAS”) benefit for eligible seniors over the age of 65 is approximately $7,384 per year (indexed quarterly for inflation) but is generally reduced where net income exceeds $79,845 and is completely eliminated where income exceeds $129,075.
2. Individuals who retired on or after July 1, 2013 may choose to delay receipt of their OAS for up to five years beyond the normal benefit start date of 65, in exchange for an increased monthly pension of 0.6 per cent (up to a total of 36 per cent annually) for each month that the benefit is delayed.
3. If you have already started receiving OAS payments but would like to benefit from the deferral, you can write to Service Canada to request a cancellation of your OAS pension, provided you have been receiving the pension benefits for less than six months, but you will have to repay the benefits you have received to date.
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