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A quick look at changes coming to Canada Pension Plan, and Canadian wallets – CP

Source: The Canadian Press
Jun 21, 2016 9:37

OTTAWA _ Here are the forthcoming changes to the Canada Pension Plan agreed to Monday by the federal government and most of the provinces and territories:

_ Increasing the income replacement rate to one-third from one-quarter, meaning the maximum CPP benefit will be about $17,478 instead of about $13,000.

_ Increasing premiums on employers and employees by one per cent, meaning an extra $408 a year coming off paycheques.

_ Increased premiums will be phased in over seven years, starting in 2019.

_ Increasing by 14 per cent to $82,700 the maximum amount of income subject to CPP.

_ Expanding the refundable tax credit known as the federal working income tax benefit, to help low-income Canadians offset the increase in premiums.

_ New portion of employee contributions to CPP will be tax deductible (not a tax credit).

INDEX: ECONOMY NATIONAL BUSINESS POLITICS LABOUR

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