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.
Much has been written about our aging workforce and the implication for employers of the coming tide of retirements. The premiers and Prime Minister recently met to attempt to deal with those workers who do not have company pension plans by enhancing the benefits available under the Canada Pension plan, unfortunately without success. Clearly, retirement planning and the funding for that retirement are hot issues.