CPP changes for individuals 60 – 70 years of age
Are you aware of the changes to the Canada Pension Plan (CPP) taking effect in January 2012? The changes affect two age groups: 60-65 and 65-70 year olds.
60 to 65 years old
Employees and self-employed individuals in this age category, who are receiving CPP benefits, must now continue to contribute to the CPP.
65 to 70 years old
Employees and self-employed individuals who are at least 65 and under 70 years of age will be required to pay into the CPP unless an election is filed.
For employees, filing the election must occur in the month prior to ceasing the contributions. This means if you qualify for the election and choose to no longer contribute to the CPP as soon as possible, your election must be filed by December 31, 2011. The election form is called Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election.
For self-employed individuals, you will elect when filing your 2012 personal tax return, which can be filed up until June 15, 2013.
Eligibility to stop paying CPP contributions is based on whether an individual:
- is at least 65 years old but under 70;
- is receiving a CPP or QPP retirement pension; and,
- is employed or self-employed
Due to the complexity of the issues involved, please consult a professional. If you have any questions, contact us at 604-985-7737.
