Government pension plans (CPP and QPP)

What’s in this article?

 

What is this?

Government pension plans provide Canadians with a partial replacement of earnings in the event of retirement, disability, or death. In most of Canada, the Canada Pension Plan (CPP) provides benefits to those that have made contributions to the plan. For residents of Québec, these benefits are provided by the Québec Pension Plan (QPP). Both plans work together to ensure that all contributors are protected, regardless of their place of residence.

If you have contributed to both the CPP and QPP, you must apply to receive QPP benefits only if you reside in Québec – if you live anywhere else in Canada, you must apply to receive CPP benefits. Because both plans work together, there is no need to apply to both; the benefit amount you will be paid will take into consideration all contributions made.

Any benefits you received during the year from either the Canada Pension Plan or the Quebec Pension Plan will be reported on a T4A(P): Statement of Canada Pension Plan Benefits slip.

 

Am I eligible?

To be eligible to receive Canada Pension Plan (CPP) benefits you must:

  • Be at least one month past your 60th birthday; and
  • Have worked in Canada and made at least one valid contribution to the CPP

Note: These benefits are not paid out automatically; you must apply to receive them. You can apply for and receive a full CPP retirement pension at the age of 65 or choose to receive it early at age 60 with a reduction of benefits. You can also apply for and receive it as late as age 70. When applying for benefits after age 65 your benefits will increase.

To be eligible to receive Québec Pension Plan (QPP) benefits you must:

  • Be at least 60 years of age; and
  • Have made QPP contributions for at least one year

Revenu Québec says…

You cannot receive your retirement pension before age 65 if you are receiving an unreduced income replacement indemnity from the Commission de la santé et de la sécurité du travail (CSST) or if you are entitled to an indemnity from the Société de l'assurance automobile du Québec (SAAQ) and the Régie has deemed you to be disabled for the same disability. 

 

Where do I claim this?

Notes:

  • If you are claiming regular CPP benefits and you are NOT receiving disability benefits, you will enter in amounts in Box 14 and 20 and you will enter a 0 in Box 16 and 21.
  • If you are claiming disability benefits but you are NOT claiming regular CPP benefits, you will enter in amounts in Box 16 and 20, and you will enter a 0 in Box 14 and 23.

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

1. Click the PREPARE tab.
2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:


3. Select the checkbox labelled I was retired or over 65.
4. Scroll to the bottom of the page and click Continue.
5. Click the RETIREMENT INCOME icon. You will find yourself here:


6. Under the RETIREMENT heading, select the checkbox labelled T4A(P): Statement of pension, retirement, annuity, and other income.
7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for your T4A(P): Statement of Canada Pension Plan Benefits, enter your information into the tax software.

 

Where can I learn more?