Changes to the Canada Pension Plan (CPP) for individuals who are 60 to 70 years of age
As of January 1, 2012, the rules for contributing to the CPP will change.
Do the changes apply to you?
The changes apply to you if you are an employee or self-employed and you are:
- 60 to 70 years of age;
- and receiving a CPP or Quebec Pension Plan (QPP) retirement pension.
You will not be affected by the changes if you stay out of the workforce.
Also, you will not be affected by these changes if you are an employee working in Quebec or a worker not subject to the CPP.
What are the changes?
Individuals 65 years of age or younger
Starting January 1, 2012, you will now have to contribute to the CPP if you are:
- receiving a CPP or QPP retirement pension;
- and working.
Individuals 65 to 70 years of age
Starting January 1, 2012, unless you elect to stop contributing to the CPP, you will now have to contribute to the CPP if you are:
- receiving a CPP or QPP retirement pension;
- and working.
How do you stop contributing to the CPP?
The method is different if you are an employee, self-employed or if you are both an employee and self-employed.
Employee
If you are an employee, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can elect to stop contributing to the CPP.
You can elect to stop contributing to the CPP, by:
- completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election;
- giving a copy to all your employers; and
- sending the original to the Canada Revenue Agency.
The election takes effect on the first day of the month following the date you give a copy of the completed Form CPT30 to your employer. For example, if you give Form CPT30 to your employer on June 22, 2012, the election will take effect on July 1, 2012.
Notes
You cannot elect to stop contributing to the CPP until you are at least 65 years of age.
The election stays in effect until you turn 70 years of age or until you revoke the election.
Self-employed
If you are self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can elect to stop contributing to the CPP.
To do so, complete the applicable section of Schedule 8, CPP Contributions on Self-Employment and Other Earnings for 2012 and file it with your Income Tax and Benefit Return for 2012. Do not use Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election.
You cannot elect to stop contributing to the CPP until you are at least 65 years of age. The earliest month an election can take effect is the first month following the month of your 65th birthday. For example, if you turn 65 on July 15, 2012, the earliest month an election can take effect is August 2012.
Note
The election stays in effect until you turn 70 years of age or until you revoke the election.
Individuals receiving both pensionable earnings and self-employed earnings
If you are both an employee and self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can elect to stop contributing to the CPP.
You can elect to stop contributing to the CPP, by:
- completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election;
- giving a copy to all your employers; and
- sending the original to the Canada Revenue Agency.
The election takes effect on the first day of the month following the date you give a copy of the completed Form CPT30 to your employer. This date applies to both your pensionable earnings and self-employment earnings. For example, if you give Form CPT30 to your employer on June 22, 2012, the election will take effect on July 1, 2012.
Notes
You cannot elect to stop contributing to the CPP until you are at least 65 years of age.
The election stays in effect until you turn 70 years of age or until you revoke the election.
How do you start contributing to the CPP again?
If you want to start contributing to the CPP again, you need to revoke your election to stop contributing to the CPP. However, you cannot revoke an election in the same calendar year that you elected to stop contributing to the CPP. For example, if you elected to stop contributing to the CPP in 2012, you cannot revoke this election before 2013.
Since you cannot revoke an election until 2013, we will provide information about this process at a later date.
