Government Pension Plans: Benefits And Contributions For 2012

Contributions and benefits under government pension plans are adjusted periodically to reflect increases in the Consumer Price Index or the average Canadian wage. The new amounts, commencing January 1, 2012, are shown in the table below. Each benefit is subject to income tax when received, with the exception of the Guaranteed Income Supplement and the Allowance. All benefits shown are paid monthly unless otherwise indicated, and are the maximum amounts.


CPP / QPP benefits (for new beneficiaries)
Retirement pension (at age 65) $986.67 $986.67
Disability pension $1,185.50 $1,185.47
Disabled contributor’s child benefit (each child) *$224.62 *$71.32
Survivor’s*** pension
under age 65 **$543.82 **$815.47
age 65 or over $592.00 $592.00
Surviving child’s benefit (each child) *$224.62 *$224.62
Death benefit (lump sum) $2,500.00 $2,500.00
Combined benefits
survivor’s*** pension and disability (under age 65) $1,185.50 n/a
survivor’s*** pension and retirement (age 65 and over) $986.67 $986.67
Annual CPP contribution
Self-employed (9.9%) $4,613.40
Employee (matched by employer) (4.95%) $2,306.70
Annual QPP contribution
Self-employed (10.05%)
Employee (matched by employer) (5.025%)
Old Age Security (OAS)
January to March 2012 $540.12
Guaranteed Income Supplement (GIS)
January to March 2012
spouse/common-law partner receives OAS or Allowance $485.61
single person (or spouse/common-law partner receives neither OAS nor Allowance) $732.36
January to March 2012
age 60 to 64, and spouse/common-law partner receives OAS and GIS $1,025.73
age 60 to 64, survivor’s*** Allowance $1,184.35
* flat benefit amounts
** these amounts may vary depending on whether the survivor is under age 45, disabled, or with or without children
*** a survivor is the spouse or common-law partner of a deceased individual

E.O. & E.


This commentary is published by the Institute in consultation with an editorial board comprised of recognized authorities in the fields of law, life insurance and estate administration.

The Institute is the professional organization that administers and promotes the CLU and the CHS designations in Canada.

The articles and comments are not intended to provide legal, accounting or other device in individual circumstances. Seek professional assistance before acting upon information included in this publication.

Advocis*, the Institute for advanced financial education.

(The Institue”), CLU, CHS, FHF.C and APA are trademarks of the financial advisors Association of Canada (TFAAC).

The institute is a wholly-owned subsidiary of Advocis. Copywrite TFAAC. All rights reserved. Unauthorized reproduction of any images or content without permission is prohibited.

Copywrite  ISSN 0382-7038

Contributors to this edition:

James W. Kraft, cpa, ca, mtax, tep, cfp, clu, ch.f.c.
Deborah Kraft, mtax, tep, cfp, clu, ch.f.c.

About The Author

Mark Schneider
Mark Schneider is one of Canada's leading Chartered Financial Planners. For over 30 years he has helped hundreds of regular Canadian families grow small fortunes through consistent planning and wise advice. He holds the following designations: CFP, CLU, CHFC, CFSB

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