Changes were introduced to the Canadian Pension Plan (CPP) starting January 1, 2012.
These changes only apply to CPP contributions and will affect you if you are aged 65 to 70 and currently receive a CPP/QPP retirement pension, or plan to apply in the near future.
Overview of Changes
The upcoming changes and action required from you, the employee, are detailed below.
Effective under the new legislation, the Payroll Department must deduct CPP contributions from your pensionable wages, from the age of 18 until the age of 70.
Employees aged 65 to 70
As per the existing legislation, CPP contributions were stopped on the last pay of the month before you began receiving a CPP/QPP retirement pension. Effective under the new legislation, the Payroll Department must deduct CPP contributions from your pensionable wages unless you opt out.
How to Opt Out of CPP Contributions
Employees in this age bracket may choose not to make CPP contributions by completing the form, CPT30: Election to Stop Contributing to the Canada Pension Plan. You must file the CPT30 election form with the Payroll Department and the Canada Revenue Agency (CRA). No CPP contributions will be deducted on pay dates following the month the form is filed. You may download CPT30 forms from the CRA’s website.
If you choose to make CPP contributions, no action is required from you. In the event you apply for CPP and wish to stop making CPP contributions, please return the completed CPT30 form by mail or in person to the Payroll Department located at:
- Vancouver: TEF 3, 5th Floor, 6190 Agronomy Road, Vancouver, BC, V6T 1Z3
- UBCO: 1138 Alumni Avenue, Kelowna, BC, V1V 1V7
If you wish to restart CPP contributions in the future, a new CPT30 form must be filed to revoke a previous election to change your contribution status at that time. The CPT30 form can only be used once per calendar year. For example, if you file the CPT 30 election form in 2012 to stop deductions, you may not file a CPT30 revocation again to restart deductions until 2013.
Note: If you are in this age bracket but not receiving a CPP/QPP retirement pension, there is no change. The Payroll Department will continue to deduct CPP contributions from your earnings. You cannot opt out of CPP contributions unless you are at least 65 years of age and receiving a CPP retirement pension.
Get More Information
Get details of these changes and why they are being made at the CRA website. You can also find information on how to apply for a CPP retirement pension, and on how continued CPP contributions will affect you.