The following changes will be phased in gradually between 2011 and 2016. The first major change occurred in January 2011 for people retiring after age 65:
- Your monthly CPP retirement pension amount will increase by a larger percentage if you take it after age 65 (gradually from 2011 to 2013).
- Your monthly CPP retirement pension amount will decrease by a larger percentage if you take it before age 65 (gradually from 2012 to 2016).
- The number of years of low or zero earnings that are automatically dropped from the CPP retirement pension calculation will increase (2012 and 2014).
Now if you are under age 65 and you work while receiving your CPP retirement pension, you and your employer must make CPP contributions (or if you work outside of Quebec while receiving a QPP retirement). These contributions will increase your CPP retirement benefits starting the following year.
- After January 1st, 2012, If you are age 65 to 70 and you work while receiving your CPP retirement pension, you can choose to make CPP contributions (or if you work outside of Quebec while receiving a QPP retirement pension), these contributions will increase your CPP retirement benefits beginning in the following year.
These changes were designed to improve retirement flexibility for working individuals in Canada, enhance pension coverage, and improve equity in the CPP.