It is important for employers, sooner rather than later, to start thinking about whether any changes need to be made to payroll costs in order to address the costs of an expanded CPP and whether amendments to pension and benefits plans will be required to accommodate the more generous CPP benefit.
An earlier First Reference Talks blog post dealt with CPP contribution changes effective January 2012. This post will deal with changes to the Canada Pension Plan (CPP) benefits and the Post-Retirement Benefit your employees need to know.
Starting in 2012, the federal and provincial governments are making a series of changes to the Canada Pension Plan that affect employees aged between 60 and 70. These changes permit CPP and QPP contributions for employees when CPP or QPP retirement benefits are received, before employees turn 70 years of age. These changes bring the CPP into line with similar changes made to the QPP in 1997.The purpose, in part, is to offer more support to employees who wish to phase in their retirement.
Established in 1995, First Reference Inc. (known as La Référence in Quebec) provides Canadian organizations of any size with practical and authoritative resources to help ensure compliance.