CPP Post Retirement Benefit Program (PRB) : The CPP Post Retirement Benefit Program is designed to provide additional benefits to Canadians who are over 60, receiving the CPP, and still working and contributing to the CPP. This CPP Post Retirement Benefit Program (PRB) was introduced in 2012, and the first PRB payments were made in 2013.
Before the implementation of the PRB program, individuals who started receiving CPP retirement benefits were no longer able to contribute to the CPP. However, with the introduction of the PRB program, the rules have changed:
1. If you are between 60 and 65 years old, receiving CPP, and still working, you are required to contribute to the CPP.
2. If you are between 65 and 70 years old, receiving CPP, and still working, you have the option to choose whether to contribute or not. To stop contributing, you must fill out the Canada Revenue Agency’s Election to Stop Contributing to the Canada Pension Plan form.
3. If you are between 60 and 70 years old, receiving CPP, working, and contributing to the CPP, you will earn a PRB for each year of your contributions.
Understanding the CPP Post Retirement Benefit Program (PRB)
The CPP PRB is a lifetime benefit that can be received in addition to your retirement income from the Canada Pension Plan. This benefit is available to individuals who continue to work while receiving their pension. The introduction of the PRB was a response to the changing lifestyles of Canadians, who are opting to work longer and live longer.
CPP Post Retirement Benefit Program 2024 : Highlights
|CPP PRB Beginning
|After 60-65 years
|2.5% (1/40th) of Max CPP Amount
|CPP PRB More Details
Benefits of CPP PRB Program 2024
- The ones who have made contributions previously will get the benefits from the Government which will increase the payment of pension.
- The same amount of pension will be provided each month to the residents of Canada.
- To get the pension quantity, one has to apply online.
- The major advantage of the scheme is to help the individuals with the financial benefits who have attained the age of 60 years.
Eligibility criteria for CPP PRB 2024
To be eligible for the PRB, applicants must meet certain criteria. Here are the details :-
- The applicant must be between 60 and 70 years old.
- The applicant must be working either as an employee or self-employed.
- Contributions to the CPP must be made.
- The applicant must be receiving a pension from the QPP or other pension schemes.
Once the eligibility criteria are met, older citizens will receive information from government officials. In case post-retirement benefits are not received, individuals can contact the CRA officials for assistance.
What is the CPP PRB amount ?
- The amount of your CPP retirement pension is determined by various factors, including the age at which you choose to start receiving it, the duration and amount of your CPP contributions, and your average earnings over your working life.
- If you begin receiving your pension at age 65 in 2023, the maximum monthly amount you could receive is $1,306.57, while the average monthly amount paid for a new retirement pension in June 2023 was $772.71.
- Your circumstances will determine the exact amount you receive, up to the maximum.
- To get an estimate of your monthly CPP retirement pension payments, you can log in to your My Service Canada Account or register for one if you don’t have an account yet.
- Additionally, the Canadian Retirement Income Calculator can provide you with a better understanding of your future financial security.
CPP Retirement Payment 2024 Dates
- The Government of Canada has already established specific dates for transferring the amount to the beneficiaries’ bank accounts.
- The schedule is adjusted annually to ensure timely payments to pensioners. In 2023, payments were made from January 27th to November 28th.
- The next payment date is December 20th, 2023. For the latest information on payment dates, please visit the Canada.ca website.
- If you do not receive the pensionable amount according to the schedule, please contact the authorities.
- Older citizens need to apply for the pension at the standard age to avoid any issues in receiving the appropriate amount.
What are the advantages and disadvantages of delaying CPP ?
- Taking CPP at the age of 60 means a permanent reduction of up to 36% of your pension. This is because CPP payments decrease by 0.6% for every month from your 60th to your 65th birthday.
- If you start at 60, you’ll lose 7.2% per year. However, if you delay receiving your CPP until age 70, your payments will increase permanently by 0.7% for every month after your 65th birthday that you delay the payment, for 8.4% per year.
- This means that if you delay CPP until age 70, you’ll receive 42% more than someone who starts taking payments at 60.
CPP Contribution Rate 2024
The CPP Contribution Rate is the percentage of pensionable earnings that employers and employees contribute. The current CPP Contribution Rate is 5.95%, which has been increasing since 2019.
Contributions made after receiving your CPP retirement pension will still entitle you to a PRB, regardless of whether you are already receiving the maximum pension amount. Each year that you continue to work and contribute after receiving CPP benefits, a new PRB will be added to your monthly CPP payout the following year.
How to check CPP payment status ?
- Individuals can view their CPP Payment Status 2024 by visiting the main portal of the Canadian Government.
- One needs to login to an MSCA account using the Social Insurance Number to check the Canada Pension Plan Payment Status 2024 and by providing the required details in it.
- It may take at least 1-2 days for the check to be credited to your account or the other pension plan you have chosen.
- You can also refer to the CRA officials regarding the payment status via the number given on the portal.
- In case you are not able to check the status, you can contact the authorities for the same.
Who has to contribute ?
- Employees and their employers will be required to pay compulsory CPP contributions if they are 60 to 64 years old.
- Those who work for themselves must pay the employer and employee portions.
- Employees who are at least 65 but under 70 years old have the option to elect not to make CPP contributions, which will result in a PRB, or to make CPP contributions and receive a PRB instead.
- Employers are required to contribute in matching quantities if employees decide to make the contributions.
- If self-employed people decide to make a contribution, they will be liable for paying both the employer and employee shares.
- Contributions stop when an individual stops working or reaches age 70.
CPP application process
- The CPP/QPP retirement pension does not begin automatically. You must apply for it. You can apply for CPP benefits online via their My Service Canada Account (or apply for Retirement Pension under the QPP.
- However, there are exceptions, such as if you currently reside outside the country, if you’ve authorized another person to access your account , or if you’ve already received CPP payments due to retirement or disability.
- If you’re unable to complete the online application, you can print out a paper copy (on line and paper application for QPP) and either mail it in or take it to the nearest Service Canada Centre/Retraite Quebec.
- Be sure to include any necessary documentation before you do so.
- If you apply for CPP/QPP benefits after you turn 65, Service Canada/ Retraite Quebec respectively can pay retroactive CPP/QPP respective retirement payments for up to 12 months (11 months plus the month you apply).
- Retroactive payments cannot be made sooner than the month following your 65th birthday. That means if you took your CPP/QPP retirement pension before age 65, then there are no retroactive payments.
FAQ’s : CPP Post Retirement Benefit Program 2024
What is the eligibility criteria for CPP PRB 2024 ?
Candidates of age above 60 years can apply for CPP Post Retirement Benefit Program.
When will the Canada Pension Scheme Payment Dates 2024 be received ?
The CPP Payment is received on the third last day of each month.
What are the Canada Pension Scheme Payment Dates 2024 ?
The CPP Payment 2024 schedule can be checked from the table given above.
When will the CPP Payment amount be maximum ?
The CPP Payment 2024 Amount will be maximum only if the individual has achieved the age of 70 years.