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|
|Disabled contributor’s child benefit (each child)||*$224.62||*$71.32|
|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|
|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|
|Employee (matched by employer) (4.95%)||$2,306.70|
|Annual QPP contribution|
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.
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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.