Native Women's Association of Canada Website

CANADA PENSION PLAN1.0 CANADA PENSION PLANThe Canada Pension Plan is a contributory earnings-related social insurance programadministered by Human Resources Development Canada. The plan covers virtually allworking Canadians, except for those living in Québec. Québec workers are covered bythe Québec Pension Plan. These two plans are closely coordinated so that you areprotected wherever you live in Canada. Whether in Canada or abroad, you will receiveyour benefits in Canadian dollars. With very few exceptions, anyone over the age of 18and earning over a minimal level of earnings contributes to the Canada Pension Plan.The plan provides for the following types of payments:Retirement Pension - If you have contributed to the Canada Pension Plan, youare entitled to receive a retirement pension based on the amount you havecontributed. You may be eligible to receive the retirement pension as early asage 60. If you are aged 60 to 64, you must have completely or substantiallyceased employment to qualify. If you choose to start receiving your retirementpension when you are between 60 and 64, the amount of your pension will bereduced by 0.5 percent for each month between the beginning of the pensionand the month after your 65th birthday. The amount will not be readjustedupward when you reach 65. However, the pension is-fully indexed each Januaryto reflect increases in the cost of living. A full retirement pension starts at age 65.If you delay receiving your retirement pension until you are between 65 and 70years of age, the amount of your pension will be increased by 0.5 percent foreach month you are past age 65 up to the month for which the first payment ismade. Contributions to the plan after age 70 are not permitted.Survivor Benefits - If you have contributed to the Canada Pension Plan for thenecessary number of years, your estate may, upon application, receive a lumpsumbenefit upon your death. Your legal or common-law spouse may be eligibleto receive this benefit. Your children may also be eligible for an orphan's benefit ifthey are under age 18, or between the ages of 18 and 25 and attending school oruniversity full-time.Disability Pension - You may be eligible for a disability pension if you havecontributed to the Canada Pension Plan for the required number of years andyou have a severe and prolonged disability. A benefit for children of disabledcontributors may also be provided if each child is under age 18, or between theages of 18 and 25 and attending school or university full-time.1.1 Eligibility:If you have made at least one valid Canada Pension Plan contribution, you are entitledto receive a retirement pension based on the amount you have contributed. You shouldPg. 187