CHANGES TO THE CANADA PENSION PLAN AND QUEBEC PENSION PLAN

April 2011


The Canada Pension Plan (CPP) has recently implemented changes to benefits that will be phased in gradually over a six year period beginning in January 2011. If you have not already applied for CPP retirement pension benefits, the changes may affect how and when you choose to retire from work and when you decide to apply for benefits. You will not be affected by these changes if you started receiving a CPP retirement pension before December 31, 2010, and you remain out of the work force.

Amongst other changes, if you apply for CPP after age 65, the increase in the monthly CPP retirement pension amount will change from 0.5% to 0.7% for each month that you are over age 65.  If you apply for CPP before age 65, the decrease in your monthly CPP retirement pension amount will change from 0.5% to 0.6% for each month that you are under age 65.  

The Quebec Pension Plan, which provides benefits in the province of Quebec, has recently announced similar changes that will also be implemented gradually over a three year period. 

For more information on the upcoming changes to CPP and QPP, please contact your Richardson GMP Investment Advisor and ask for a complimentary copy of our publication “Canada Pension Plan (CPP) – 2011 Changes”.


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