Home > Mature workers, Uncategorized > Pension-Update Dec.7 What is changing?

Pension-Update Dec.7 What is changing?

Bill C-51, receiving assent in parliament on December 15, 2010, will take affect in 2012. Some of these changes include:

  1. Workers will no longer have to cease work or reduce their earnings in order to collect CPP retirement pension benefits before age 65. Currently, workers must stop working (or keep earnings to a maximum amount) to collect benefits (this is called the “work cessation test”).
  2. The rates of Canadians’ low earning years are excluded from the calculation of their benefits entitlements.  Pensionable earnings levels used to calculate CPP pension benefits will increase, leading to better pensions.
  3. Those workers receiving CPP retirement pension benefit recipients can continue making premium contributions if they choose.
  4. The penalty for early receipt of benefits (before 65 yrs old) will increase and the bonus for not collecting benefits until later will be better.

For more information, see

Human Resources and Skills Development Canada Guidelines

How the Changes affect You



Pension-Update Oct. 30 Warning about investment charges

Just days after a report with recommendations for Canadian pension reform by the Canada Research chair was released, Ontario Finance Minister warned workers about fees on investments.

The pension report concluded that CPP coverage for more employees, paying bigger premiums, is the best choice for reform.

Ontario Finance Minister Dwight Duncan, in a 26 page discussion paper, stated “an annual fee of 2 per cent on managing a person’s investments over 40 years at a 7 per cent real rate of return can lower $1.2 million in retirement savings to under $800,000”. It makes sense then that individual investments cannot be Canadians’ only source of income after retirement.

Click for more information about Canada Chair Report on Pensions Oct 26

Click here for article on Ontario of Finance minister’s warning Oct. 30

Ontario pension reform

What’s new

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