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I am 60 years old and getting $680 CPP. I work also and contribute in CPP. Will CRA put that extra CPP that I contribute in their pocket or I will be paid? My plan to work till age 70 depending on health.
Since you are already receiving a CPP retirement pension, the contributions from your present work are going toward earning Post-Retirement Benefits (PRBs). You can think of a PRB as a mini-CPP that is based on one single calendar year, rather than your working life (which is what the $680 is based on). PRBs are earned one calendar year at a time. So your CPP contributions made this year for work in 2025 will result in you earning a PRB that will begin to pay out effective January 1st of next year, 2026 (you might not receive the actual cash in January though). This PRB that was earned from 2025 work, and began paying out in 2026, will now increase each year for inflation (starting in 2027, and ongoing...). The same earnings threshold apply for PRBs. If you continue to work in 2026, the same process happens only for a new calendar year. You would earn a new PRB that was earned from 2026 work, and began paying out in 2027, will now increase each year for inflation (starting in 2028, and ongoing...). PRBs can be earned between ages 60 and 70, if you are already receiving a CPP retirement pension, however, at age 65 you have a new option that allows you to stop contributing (and therefore stop earning PRBs) while you are continuing to work. I've illustrated these options in this infographic: finepointsolutions.ca/wp-content/uploads/2024/11/CPP-PRBs-and-Post-65-Options-Rev4.png The Government of Canada webpage for this information is here: www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-post-retirement/eligibility.html
I retired in May 2023. I decided to take early CPP, which is 870.48 a month. On November 29th I received another deposit for 53.98. I assume that is the enhancement part, and that will be an additional amount monthly going forward?
I suspect that this is an adjustment because Service Canada did not have all your contribution history information from the CRA, when they originally calculated your retirement pension amount. This kind of adjustment is not unusual. There are two entities that administer the CPP. The CRA collects contributions (via payroll), and Service Canada delivers benefits. The CRA and Service Canada have information sharing agreements. However, this means that there is a lag between when Service Canada has an individual's complete information for doing the benefit calculations. Some of the amount will be a retroactive portion (and would not continue), and some of the amount will represent your new going-forward amount. So, this has less to do with the enhancement part, and more to do with Service Canada having your complete contribution history for a proper benefit calculation.
Is that four percent on about four thousand dollars - the difference between the two numbers? Why don't they let employees contribute over the seventy three thousand? Without the employer..
Great question. Behind the scenes, that $1364 CPP maximum now has 3 parts: the original or Base CPP, and two parts of the new Enhanced CPP. The extra 4% is specifically on earnings between the original (lower) earnings threshold - called the YMPE, and the new (higher) earnings threshold - called the YAMPE. The new Enhanced CPP works by always taking your best 480 months (40 years) of contributions/earnings, on an on-going forward basis. Thus, the CPP maximum is actually increasing each month. It does so because each new monthly contribution into the Enhanced CPP (such as the extra 4% on earnings between the YMPE and YAMPE) is earning an individual a new month of pension credit for the 'best 480 months' in the calculation. This is described on a Government of Canada website here, along with historic data for each monthly CPP maximum since the Enhanced CPP started: open.canada.ca/data/en/dataset/e547539b-7fc6-4879-be54-3d1f80ac9e9e So the extra 4% is paying for a part of the monthly CPP maximums, which increase throughout the year.
Appears the gain will be felt long after thise that have contributed (the mass retirees) are long gone. Gov is trying to hide something, would it have anything to do with Carney accessing $10 billion of CPP to invest partly in his own US company?
@@stynger_OO7 No, man, what you get out of CPP is based on what you put in. Someone who is just retiring mostly just contributed using the older lower rates, whereas someone just entering the work force will have contributed using the new higher rates. In no way should current retirees be drawing funds from CPP as though they put in more than they did. That would defy the whole purpose of CPP, which is run as a pension rather than a government program.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
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Great stuff guys, thank you!
I am 60 years old and getting $680 CPP. I work also and contribute in CPP. Will CRA put that extra CPP that I contribute in their pocket or I will be paid? My plan to work till age 70 depending on health.
Since you are already receiving a CPP retirement pension, the contributions from your present work are going toward earning Post-Retirement Benefits (PRBs). You can think of a PRB as a mini-CPP that is based on one single calendar year, rather than your working life (which is what the $680 is based on). PRBs are earned one calendar year at a time. So your CPP contributions made this year for work in 2025 will result in you earning a PRB that will begin to pay out effective January 1st of next year, 2026 (you might not receive the actual cash in January though). This PRB that was earned from 2025 work, and began paying out in 2026, will now increase each year for inflation (starting in 2027, and ongoing...). The same earnings threshold apply for PRBs. If you continue to work in 2026, the same process happens only for a new calendar year. You would earn a new PRB that was earned from 2026 work, and began paying out in 2027, will now increase each year for inflation (starting in 2028, and ongoing...). PRBs can be earned between ages 60 and 70, if you are already receiving a CPP retirement pension, however, at age 65 you have a new option that allows you to stop contributing (and therefore stop earning PRBs) while you are continuing to work. I've illustrated these options in this infographic: finepointsolutions.ca/wp-content/uploads/2024/11/CPP-PRBs-and-Post-65-Options-Rev4.png
The Government of Canada webpage for this information is here: www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-post-retirement/eligibility.html
This is all common knowledge. Was this an ad for Jason?
I retired in May 2023. I decided to take early CPP, which is 870.48 a month. On November 29th I received another deposit for 53.98. I assume that is the enhancement part, and that will be an additional amount monthly going forward?
I suspect that this is an adjustment because Service Canada did not have all your contribution history information from the CRA, when they originally calculated your retirement pension amount. This kind of adjustment is not unusual. There are two entities that administer the CPP. The CRA collects contributions (via payroll), and Service Canada delivers benefits. The CRA and Service Canada have information sharing agreements. However, this means that there is a lag between when Service Canada has an individual's complete information for doing the benefit calculations. Some of the amount will be a retroactive portion (and would not continue), and some of the amount will represent your new going-forward amount. So, this has less to do with the enhancement part, and more to do with Service Canada having your complete contribution history for a proper benefit calculation.
@@FINEPOINTSOLUTIONS Thank you for the detailed reply
Is that four percent on about four thousand dollars - the difference between the two numbers?
Why don't they let employees contribute over the seventy three thousand? Without the employer..
Max. CPP is currently $1364(if taken at 65), so for those paying the extra 4%, what is the gain?
My guess it’s a redistributive tax
The gain obviously increases based on the number of years you contribute under the new rates.
Great question. Behind the scenes, that $1364 CPP maximum now has 3 parts: the original or Base CPP, and two parts of the new Enhanced CPP. The extra 4% is specifically on earnings between the original (lower) earnings threshold - called the YMPE, and the new (higher) earnings threshold - called the YAMPE. The new Enhanced CPP works by always taking your best 480 months (40 years) of contributions/earnings, on an on-going forward basis. Thus, the CPP maximum is actually increasing each month. It does so because each new monthly contribution into the Enhanced CPP (such as the extra 4% on earnings between the YMPE and YAMPE) is earning an individual a new month of pension credit for the 'best 480 months' in the calculation. This is described on a Government of Canada website here, along with historic data for each monthly CPP maximum since the Enhanced CPP started: open.canada.ca/data/en/dataset/e547539b-7fc6-4879-be54-3d1f80ac9e9e
So the extra 4% is paying for a part of the monthly CPP maximums, which increase throughout the year.
Appears the gain will be felt long after thise that have contributed (the mass retirees) are long gone. Gov is trying to hide something, would it have anything to do with Carney accessing $10 billion of CPP to invest partly in his own US company?
@@stynger_OO7 No, man, what you get out of CPP is based on what you put in. Someone who is just retiring mostly just contributed using the older lower rates, whereas someone just entering the work force will have contributed using the new higher rates.
In no way should current retirees be drawing funds from CPP as though they put in more than they did. That would defy the whole purpose of CPP, which is run as a pension rather than a government program.
But the other side of your facts how many people die everyday and are off the CPP roles
Lot of these kind of information are fake, I called government before😢
I did receive any CCP increase
Fake news
lies !
CPP is a joke bring in UBI and match the cost of living
Who is distributed this false information from July 2024? Why they are targeting seniors?it’s lies and false! No penny given!