Canada Pension Plan Forms

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Individuals in Canada are able to apply for Canada Pension Plan as early as 60 years. The normal age for Canadian citizens to apply for Canada Pension Plan retirement benefits is 65 years. At the age of 65 years, an individual receives the amount of Canada Pension that he or she is eligible to receive.

Canada Pension Plan information, Canada Pension Plan applications and Canada Pension Plan forms can be obtained from www.servicecanada.gc.ca. Canada Pension Plan provides citizens, who have contributed to the Canada Pension Plan during their career, with a monthly retirement benefit. As of the year 2010, the maximum monthly benefit is $934.17. 

An individual must apply for Canada Pension Plan and the Canada Pension Plan application must be filled out in order to be eligible to receive the amount. Canada Pension Plans forms can be easily obtained online.

While you are starting your retirement process and are preparing to complete the Canada Pension Plan form, you should also consider reviewing your other sources of retirement income. It is crucial that whoever is approaching or has reached the age of retirement, he or she should review his or her investment holdings. Individuals should have have prepared a proper investment and estate plan at this stage. Individuals with RRSPs need to start planning for income from these plans and individuals need to familiarize themselves with registered retirement income funds (RRIFs) in Canada.

Investment options should be more secure and investments which provide cash flow are crucial. Guaranteedinvestments.com provides investors access to a wide variety of products and services tailored according to the requirement of a risk adverse investor. Investors who are looking for capital preservation and peace of mind can consider investments such as Guaranteed Investment Funds, Annuities, Insured Annuities, Guaranteed Minimum Withdrawal Benefit Plans, Guaranteed Lifetime Withdrawal Benefit Plans and other types of similar products.

For a more secure future, consider investments which can save your estate the burden of probate fees (also known as death taxes).

Contact Guaranteedinvesments.com for additional information.

If I am between 60 and 64, how do I qualify for a retirement pension?

To qualify for a retirement pension between the ages of 60 and 64, you need to fulfill the one of the following conditions:

This implies that you should not be working by the end of the month before the CPP retirement pension begins and during the month in which it initiates.
For example: If you want your pension to begin in April, you have to stop working by the end of March and you should not be working during the month of April.
OR

This means you earn less than the current monthly maximum CPP retirement pension payment ($934.17 as of 2010 schedule) in the preceding month of the beginning of pension and also in the month it initiates.
Example: If you want your pension to begin in April 2010, you need to earn less than $934.17 in both March and April. Once you start receiving your CPP pension, you can work as much as you want without affecting your pension amount. However, you cannot contribute to the CPP on any future earnings from employment.

How is my CPP retirement pension calculated?

Your CPP retirement pension is based on the accumulated amount and the time period for which you contributed to the CPP, or to both the CPP and the Quebec Pension Plan (QPP). The age of retirement also plays a significant role in this regard.
The CPP protects your pension effectively by making certain adjustments before calculating 25% of the earnings you contributed over your working life. For example, some low-earning periods during your career may be "dropped out," so they do not reduce the amount of your pension.
Every year, the CPP retirement pension is indexed to the Consumer Price Index. The average monthly retirement pension (at age 65) in January 2010 was $502.57.

How does my age affect the amount of my pension?

Although your CPP retirement pension typically starts the month after your 65th birthday, you can be eligible to receive your CPP retirement pension anytime after age 60. The monthly amount of pension to be received is lesser if you begin receiving it before the age of 65 years, and higher if you initiate receiving the amount after the age of 65 years. The CPP offers you flexibility in respect to the age you retire. You can take your pension as early as the age of 60 years or receive a relatively higher pension amount if you wait until you turn 65 years to begin receiving it.

How do I decide when to take my retirement pension?

The decision is yours, and depends on your circumstances. Some considerations which we would recommend are:

What happens if you don't work after the age of 60 and delay receiving your pension until you turn 65?

For many in this situation, the extra five years of no earnings will lower the amount of CPP retirement pension payable at age 65. This is because the period you are expected to contribute to the CPP continues until you start receiving your retirement pension. This is basic reason why you should carefully consider your personal situation when deciding when to start your CPP retirement pension.

Can I get an estimate of my retirement pension before I decide to apply?

Yes, sure. For an estimate of your CPP retirement pension, check your CPP Statement of Contributions, or contact us.
The closer you are to the date you want your pension to begin, the more accurate the estimate will be.

Applying for your retirement pension

When should I apply?

Although you are not required to do so, it is best to apply at least six months earlier to when you want your pension to begin. Please note that there are governmental restrictions on retroactive payments. A delay in applying could result in significant loss of benefits. For information, contact us.

How do I apply?

You must fill out an application form. Application kits are available from our Web site, or you can ask us to mail a kit to you. You can also apply for your CPP retirement pension on the Internet (see the section called "Online services" on page 31 for details).

I had children after 1958, am I eligible to receive any provision?

If your earnings either stopped or were lower because you were raising your children under the age of seven, we can assist you in getting that period of time excluded from the calculation of your retirement pension. This is called the child-rearing provision. It means we may not count these child-rearing years when calculating the amount of your benefit, and it ensures that you get the highest possible amount payment. Please contact us to find out more.

What happens if a CPP contributor dies before applying for a retirement pension?

If a CPP contributor dies before applying, his or her retirement pension cannot be paid to anyone else unless the deceased contributor was over 70 and the application was submitted within one year of the death. In this case, up to 12 months of retirement benefits can be paid. In addition, his or her spouse or common-law partner may be eligible for a CPP survivor's pension. For more information and details about the CPP survivor's pension, contact us.

Receiving your retirement pension

When does my pension begin?

From age 60 to 65 years - You can start receiving your retirement pension the month after you stop working or after you earn less than the allowable maximum pension payment ($934.17 in 2010) for two consecutive months.

From age 65 on – You can start receiving your pension the month after your 65th birthday (or at a later date if you specify one). Or, you can choose to have your pension paid back to a maximum of 11 months from the date the application is received, but not earlier than the month after your 65th birthday.