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Canada Pension Plan (CPP) – Overview

The Canada Pension Plan (CPP) provides contributors and their families with partial replacement of earnings in the case of retirement, disability or death. Almost all individuals who work in Canada outside Quebec contribute to the CPP.

If you have lived or are living outside Canada, you may qualify for a pension from that country as well.

The CPP operates throughout Canada, except in Quebec, where the Québec Pension Plan (QPP) provides similar benefits. The CPP and QPP work together to ensure that all contributors are protected, no matter where they live.

If you have contributed to both the CPP and QPP, you must apply for the QPP if you live in Quebec or for the CPP if you live elsewhere in Canada. Please note that you do not have to apply to both plans. Your benefit will be paid by the plan according to your place of residence. The benefit amount you will be paid will take into consideration all contributions made to both plans.


Old Age Security (OAS) – Overview

The Old Age Security program is the Government of Canada’s largest pension program. It is funded out of the general revenues of the Government of Canada, which means that you do not pay into it directly.

The Old Age Security (OAS) pension is a monthly payment available to seniors aged 65 and older who meet the Canadian legal status and residence requirements. You may need to apply to receive it.


Old Age Security Pension Recovery Tax (Clawback)

If your net world income exceeds the threshold amount ($73,756 for 2016), you have to repay part or your entire OAS pension. Part or your entire OAS pension is reduced as a monthly recovery tax.


Pension Income Credit

Pension Income Splitting