Canadian Pension Plan (CPP) was created in 1965 to cater to Canadian residents in their post-retirement years.
Whether you’re an existing CPP recipient or about to start receiving the pension, it’s worth knowing the CPP payment dates.
In this article, you will learn everything that CPP entails including eligibility, benefits, payment dates, and more.
At the end of this article, you should know your entitled CPP benefits and the payment dates for 2022 and 2023.
Let’s dive right in.
Table of Contents
What is the Canadian Pension Plan?
The Canadian Pension Plan (CPP) is a monthly pension that replaces the retirement income of eligible seniors in Canada.
CPP is administered by the Canada Revenue Agency (CRA) and it’s taxable according to a recipient’s tax rate.
Before 2019, retirees were only entitled to a quarter (25%) of their contributions to this program. But after the introduction of CPP Enhancement in 2019, you can receive up to one-third (33%).
The CPP Enhancement allows for higher pre-retirement contributions to CPP which in turn yields higher payments during retirement.
Moreover, CPP covers all the provinces in Canada except Quebec. The CPP equivalent in Quebec is known as the Quebec Pension Plan (QPP).
If you’re not an existing recipient of CPP benefits, you need to know the eligibility before looking forward to the payment dates.
Who is Eligible for the CPP Payment?
Officially, the retirement age in Canada is 65 but you can receive your payments as early as 60 or as late as 70.
There are 2 conditions you need to fulfill to be eligible for CPP benefits. These are:
- Be 60 years of age or older
- Initiate a minimum of one contribution to the CPP (this could originate from your employment income or funds received from a former spouse or partner after separation)
Compared to other government benefits, CPP has flexible requirements.
Before the end of this article, you will learn about the step-by-step processes on how to apply for CPP benefits.
How Much CPP Payment Will You Get?
If you meet the eligibility standards specified above, the amount of CPP you will receive depends on the:
- Age at which you started receiving your payments.
- Number of valid contributions you made to the CPP
- Number of years you made contributions
- Your average income when working
As of July 2022, the average amount payable to new CPP recipients aged 65 is $737.88 while the maximum pay is $1,254.
Annually, the CRA adjusts the payments to reflect the current inflation rate in the country. As such, you can expect the CPP payment to increase annually as per the Consumer Price Index (CPI).
The following table highlights the average and maximum CPP payments for January to December 2022.
|July 2022 CPP Average amount for new recipients
|2022 CPP maximum payment amount
|Retirement pension for recipients at 65 years of age
|Retirement pension at post-retirement for recipients at 65 age
|Disability benefit at post-retirement
|Less than 65-year-old survivor’s pension
|65-year-old and above survivor’s pension
|Disabled CPP contributors’ children
|Deceased CPP contributors’ children
|One-time death benefit
|65-year-old combined survivor’s and retirement pension
|Combined disability pension and survivor’s pension
How to Get the Maximum CPP Payments
To be eligible to receive the maximum payments in the table above, you must have contributed to CPP for up to 39 years.
The maximum contribution for 2022 to the CPP is $3,499.08 for employers and employees and $6,999.60 for self-employed individuals.
For 2023, the maximum contribution limit is $3,754.45 for employers and employees and $7,508.90 for self-employed persons.
Note that $66,600 is the maximum pensionable earnings under CPP for 2023. This is determined based on the growth of weekly wages and salaries in the country.
What this means is that if you earn more than $66,600 in 2023, you cannot make more than the stipulated maximum contribution to the CPP.
However, the CRA retains $3,500 as the basic exemption amount for 2023.
When Can I Start Receiving CPP Benefits?
This is totally dependent on you. You can start as early as 60 years or wait till 65 or 70 years.
However, the time you start affects what you earn. If you start as early as 60 years, you will receive less. If you delay till 70, you will receive more.
Here is how it works.
When you apply for retirement payments at 60 or before 65, each month 0.60% is deducted from your pension payment. This makes a 7.2% deduction annually.
This will amount to a permanent loss of 36% of your retirement pension payment calculated between the ages of 65 and 70.
On the flip side, your pension payment increases by 0.7% monthly or 8.4% annually if you delay till 70 years before receiving them.
That’s a 42% permanent increase accumulated between the ages of 65 and 70.
To make a decision, you may need to look into a few things, starting with your financial status and earning potential.
Do you have a job or a business that will pay you between 65 and 70 years if you want to delay?
A careful look into the tax implications should be done also. If you wait till 70, you may pay higher taxes as CPP retirement payments are taxable.
Another factor you should consider is the financial capability of your household. If you delay, will it adversely affect your partner and/or family?
If you’re not sure, you should contact your financial advisor to get expert advice on the suitable time to start receiving the CPP payments.
CPP Payment Dates For 2022
The following table shows the specific dates that the CPP pensions were administered by the CRA in 2022.
|January 27, 2022
|February 24, 2022
|March 29, 2022
|April 27, 2022
|May 27, 2022
|June 28, 2022
|July 27, 2022
|August 29, 2022
|September 27, 2022
|October 27, 2022
|November 28, 2022
|December 21, 2022
CPP Payment Dates For 2023
The following table shows the specific dates that CRA will administer CPP pensions in 2023:
|January 27, 2023
|February 24, 2023
|March 29, 2023
|April 26, 2023
|May 29, 2023
|June 28, 2023
|July 27, 2023
|August 29, 2023
|September 27, 2023
|October 27, 2023
|November 28, 2023
|December 20, 2023
If you do not receive your payment on these specified dates, don’t hesitate to contact CRA for rectification.
As mentioned earlier, you can receive the CPP pensions directly into your account or through direct deposit or manually through a cheque.
If you opt for cheque payment, the cheque will arrive within the last 3 business days of the payment date.
Just a piece of advice, you should the CRA to deduct federal taxes on your CPP payments monthly. This will help prevent tax accumulation and surprises in the future.
The following are ways you can ask the CRA to automatically deduct federal taxes on your CPP payments:
- Log in to your My Service Canada Account
- Complete and mail/drop the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP3520CPP) form at the nearest Service Canada office.
Failure to ask the CRA to deduct federal taxes on your CPP means that you must report the taxes on your income tax filing quarterly.
If you live outside Canada, the CRA will automatically deduct a 25% or lower non-resident tax on your CPP pension. The exact tax rate depends on the country you live in.
However, you can ask the CRA to lower the non-resident taxes.
CPP Retroactive Payments
One interesting aspect of CPP is that you can claim up to 12 months (11 months + the month of application) of retroactive payments if you apply for the pension at the age of 65.
You will not be eligible for the retroactive payments if you apply before the age of 65.
The exact retroactive payment you get for 12 months will depend on the date you start receiving the CPP pension.
How to Apply For CPP Payments
As mentioned earlier, to benefit from CPP retirement pension payments you need to apply. This application can be done electronically or through pen and paper.
To apply electronically, visit My Service Canada Account (MSCA). Your application will take between 7 to 14 days to be processed and responded to by the CRA.
On the other hand, you can apply for the CPP payment mail. All you need is to download the application form through this link.
After filling out the form, mail it to CRA or the closest Service Canada office.
It will take up to 120 days for the CRA to notify you of the progress of your application when you apply through mail.
Upon approval, you will start receiving the CPP payment on the following payment dates. You will continue to receive the payment for the rest of your life.
Each January, the CRA will adjust your entitled pension as per the Consumer Price Index to match inflation. However, Your payment will not decrease when inflation drops.
What Happens When a CPP Contributor Dies?
When a CPP contributor dies, their children, spouse, or common-law partner will be eligible to receive the deceased CPP benefits.
The children receive children’s benefits. The spouse or common-law partner receives a survivor’s pension while the deceased estate receives death benefits. More on this below.
If the deceased has no estates, the death benefits go to the person responsible for the funeral expenses, the deceased partner, or the next of kin.
Additional CPP Benefits
As a CPP recipient, you can enjoy additional benefits depending on your circumstances. These benefits will add to your monthly retirement benefit if you qualify.
Below are five additional benefits you should watch out for.
1. Post-Retirement Benefits (PRB)
If you continue to work and make contributions to the CPP after you turn 65, these payments will add to your PRB.
This will increase the overall monthly benefits you get when you start receiving your CPP payments.
2. CPP Disability Benefits
As the name implies, this is a monthly benefit tailored to CPP recipients with disabilities.
To qualify for CPP Disability Benefits, you need to meet the following conditions.
- Be under 65 years.
- Made substantial contributions to the CPP.
- Have a physical or mental disability that prevents you from engaging in activities that can earn you a living
- Have an indefinite or long-term disability that may result in death
3. CPP Post-Retirement Disability Benefits
This benefit is tailored to CPP recipients that are disabled but not eligible for the above disability benefits because they last less than 15 months as recipients of CPP.
To be eligible for CPP Post-Retirement Disability Benefits, you must meet the following conditions.
- Be under 65 years.
- Received CPP retirement pension benefits for less than 15 months
- Made substantial contributions to the CPP, especially in 4 out of the last 6 years
- Contributed to the program for at least 25 years including 3 out of the last 6 years.
- Have an indefinite or long-term disability that may result in death
4. Survivor’s Pension
To be considered a survivor, you must be legally married to the deceased CPP contributor.
You will also qualify if you’re a common-law partner to the deceased for a minimum of 1 year.
The amount you will get under this provision is dependent on how much the deceased contributed and how old you are.
5. Children’s Benefits
This benefit is tailored to the children of a deceased or disabled contributor to CPP.
To be eligible, a child must be a natural born or legally adopted of the deceased or disabled contributor.
Also, the child must be under the age of 18 or under 25 and enrolled full-time in a recognized school or university to qualify for this benefit.
Note that one child can receive the benefits of 2 children.
Children aged 25 and above are not eligible for this benefit.
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The CPP pension is your umbrella during rainy days. At a time when you’re not able to work or generate income, you can rely on the CPP pension throughout your remaining days on earth.
As such, you want to contribute to the CPP program to the best of your abilities when you have the energy to work.
You should consult your financial advisor for guidance if you’re not sure how to make good use of your CPP pension.
Note that your contribution to CPP ends at 70 years. Whether you stop working before 65 years or not, you cannot make contributions after 70.
That brings us to the end of this article. Kindly share your CPP experience with us in the comment section.