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CPP Changes


As of January 1, all employees (and self-employed taxpayers) will be required to contribute to CPP even if they are already collecting a CPP retirement pension.

  • For employees who are under age 65, you have to start contributing to CPP again on January 1, even if you're already collecting a retirement pension.
  • Employees who are over 70 continue to be exempt.
  • For employees ages 65 to 69, beginning January 1, 2012, payroll departments are required to withhold CPP contributions unless they have a completed Form CPT30 Election to stop contributing to the Canada Pension Plan, or revocation of a prior election on file.
  • For self-employed taxpayers, the requirement is not so urgent. For self-employed taxpayers between age 65 and 69 to opt out of the additional CPP contributions, all that is required is to indicate on Schedule 8 for 2012 (filed with their 2012 tax return) which month they want to cease contributing.

The good news for those who continue to contribute after they begin receiving their CPP retirement pension is that they are contributing to a post-retirement pension which could earn them an increased CPP pension of up to $25 per month for each year they contribute while receiving the retirement benefits.