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Canada Pension Plan (CPP)

What is 'Canada Pension Plan - CPP'

One of three levels of Canada's retirement income system, which is responsible for paying retirement or disability benefits. The Canada Pension Plan was established in 1966 to provide a basic benefits package for retirees and disabled contributors. If the recipient dies, survivors receive the plan's provided benefits.

The CPP pays a monthly amount, which is designed to replace about 25% of the contributor's earnings on which initial contributions were based, and is indexed to the Consumer Price Index.

Explaining 'Canada Pension Plan - CPP'

There are several rules governing the amount an individual will receive upon retirement or disability. This amount is based on the person's age and how much he or she contributed to CPP while working. CPP benefits are considered taxable income. This is why some households elect to share the income, which can reduce taxes.

CPP is roughly equivalent to the U.S. Social Security program. People residing in Quebec contribute to and receive the Quebec Pension Plan (QPP), not the CPP.


Further Reading


Federalism and the politics of the Canada and Quebec pension plans
www.tandfonline.com [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …

Measuring and reporting the actuarial obligations of the Canada Pension PlanMeasuring and reporting the actuarial obligations of the Canada Pension Plan
onlinelibrary.wiley.com [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …

Gendering the pension promise in Canada: Risk, financial markets and neoliberalismGendering the pension promise in Canada: Risk, financial markets and neoliberalism
journals.sagepub.com [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …

Differential Returns by Year of Retirement under the Canada Pension PlanDifferential Returns by Year of Retirement under the Canada Pension Plan
www.utpjournals.press [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …

The Canada Pension Plan's experience with investing its portfolio in equitiesThe Canada Pension Plan's experience with investing its portfolio in equities
heinonline.org [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …

RRSPs and an Expanded Canada Pension PlanRRSPs and an Expanded Canada Pension Plan
papers.ssrn.com [PDF]
… This shift in financing was accompanied by the creation of the Canada Pension Board Investment … increased between 1977 and 2011), and the overall shift from defined benefit to defined … are a source of policy drift (Hacker, 2004) in the Canadian pension system, where private …


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