About the Canada Pension Plan (CPP)
The Canada Pension Plan is a retirement pension that provides replacement income when a person retires from work. CPP is a social insurance program, and it is one “pillar” of Canadians' retirement income system—the other three are Old Age Security (OAS), Guaranteed Income Supplement (GIS) and personal savings. The CPP is funded by contributions from employees, employers and the self-employed. It is not paid for by the government, despite what many Canadians may think.
A government-administered program, the CPP is mandatory, meaning that all Canadian workers and employers must contribute. This plan covers all of Canada except Quebec, which has the Quebec Pension Plan (QPP) for residents of that province. Below are the remaining 2024 CPP payment dates.
CPP payment dates for 2024
January 29, 2024February 27, 2024March 26, 2024April 26, 2024May 29, 2024June 26, 2024July 29, 2024August 28, 2024- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Where does the CPP money come from?
Unlike OAS and GIS, CPP is funded by employers and employees, as well as the self-employed. These contributions, which appear as paycheck deductions, are compounded and invested. For self-employed people, the CPP owed on your gross business income is added to your tax bill. The principal and any money earned goes back into the program.
In January 2024, CPP contributions were raised as part of the government's seven-year plan, which began in 2019, to increase retirement income. Learn more about CPP development to see how much you'll pay as an employee or self-employed.
Who manages the CPP investment portfolio?
The pension scheme's investments are managed by CPP Investments, a Crown company operating remotely from the government. Every three years, the Office of the Chief Actuary of Canada assesses the sustainability of the program; the next update will be in 2025. “CPP is expected to be financially sustainable for at least the next 75 years,” CPP Investments said on its website.
Am I eligible for CPP?
If you are at least 60 years old and have made at least one contribution to the CPP, you are eligible for CPP payments. You may also be eligible if you received CPP credits from a former spouse or partner who paid into the program. CPP benefits are available to Canadian citizens, permanent residents, legal residents or permanent residents.
Should I apply for CPP or QPP?
If you contributed to both CPP and/or Quebec's QPP during your working years, your residency at the time of application determines which plan you qualify for—if you are a Quebec resident, you apply for a QPP pension. Otherwise, you will apply to CPP.
That's when you can start earning your CPP
You are eligible to start receiving your pension anytime between the ages of 60 and 70, but the younger you are when you start receiving CPP, the lower your monthly payments will be. Most Canadians choose to start receiving payments at age 65.
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