The Canada Pension Plan Post-Retirement Benefit (CPP PRB) is designed to provide additional income for those who continue working after receiving their CPP retirement pension. It offers a significant boost to retirement income, ensuring financial stability even during your working years post-retirement.
What is the CPP Post-Retirement Benefit?
The CPP PRB is a monthly benefit for Canadians between the ages of 60 and 70 who continue to work and contribute to the CPP. If you are already receiving your CPP retirement pension but continue working, your contributions will go towards the PRB, providing an extra benefit that is paid for life. The amount you receive is based on your contributions made after starting to receive your CPP pension.
Eligibility for CPP PRB
To be eligible for the CPP PRB, you must meet the following criteria:
- Age: You must be between 60 and 70 years old.
- CPP Pension: You are already receiving your CPP retirement pension.
- Contributions: You must continue working and contribute to the CPP during retirement.
- Opt-in Requirement (for those 65-70): If you are aged 65 to 70, you can choose to stop contributing to the CPP by submitting a CPT30 form. However, by continuing to contribute, you will be eligible for the PRB, adding to your retirement income.
How Much Can You Receive?
The exact amount of your CPP PRB depends on your contributions. Each year, contributions made while receiving CPP will generate a new PRB that is added to your total pension income.
For 2024, the maximum monthly CPP PRB payment is $44.46 for those who have made the maximum contributions. Your actual payment will depend on your contributions from the previous year. For example, if you contributed half of the maximum amount, your PRB would be half of the maximum payment, around $22.23 per month.
Payment Schedule
The CPP PRB is paid monthly alongside your regular CPP payments. Payments for the PRB start the year after you make contributions, and they continue for life. For example, if you contributed to CPP in 2023, your PRB payments will begin in 2024. These payments will continue as long as you remain eligible.
Example Payment Calculation
If you continue working at age 65 and contribute the maximum allowable amount to CPP, you can expect to receive up to $30-$44 extra per month for each year of contributions. This amount increases each year you continue working and contributing, providing a cumulative boost to your retirement income.
Key Benefits of the CPP PRB
- Increased Retirement Income: Each year of contribution after retirement boosts your overall CPP income.
- Lifetime Payments: Once your PRB payments begin, they continue for life, even if you stop working.
- Automatic Enrollment: If you are under 65 and working, CPP contributions and the PRB are automatic. If you are between 65 and 70, you must opt-in.
Key Information on CPP PRB
| Criteria | Details |
|---|---|
| Eligibility Age | 60 to 70 years old |
| Maximum Monthly Payment (2024) | $44.46 |
| Contribution Required | Continue working and contributing to CPP after retirement |
| Payment Frequency | Monthly, alongside regular CPP payments |
| Opting Out | Optional for those aged 65 to 70 (can stop contributions by filing CPT30 form) |
FAQs
- Are CPP Post-Retirement Benefits taxable?
Yes, the CPP PRB is considered taxable income and must be reported when filing taxes. - Can I stop contributing to CPP after 65?
Yes, if you’re between 65 and 70, you can choose to stop contributing by filing the CPT30 form with your employer and the CRA. - How is the PRB amount calculated?
The PRB is based on your annual CPP contributions made after you start receiving the retirement pension. Each year’s contributions generate a new PRB. - When do PRB payments start?
PRB payments start the year after you make CPP contributions while receiving your CPP retirement pension. - Can I still receive the PRB if I stop working?
Yes, once you are eligible, your PRB payments will continue for life, regardless of whether you stop working.
