CPP Flashcards

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1
Q

CPP

A

Contributory earnings above YMPE= YMPE -YBE x 5.45%
Contributory earnings below YMPE = earnings - YBE x 5.45%
Self employed = 10.90%
YMPE = $61,600 (2021)
YBE = $3500

Working beneficiaries must continue contributions up to age 65. Past age 65 contributions are optional

Benefits:
Before age 60 = 0.6%/mth
After age 60 = 0.7%/mth

4

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2
Q

CPP assignment steps

A
  1. Calculate assignment ratio=# of years of cohabitation divided by # of years of contribution to CPP. Calculate percentage
  2. Calculate the assignable portion for each person in dollars = CPP pension entitlement x assignment percentage
  3. Calculate the non-assignable portion of each person’s pension in dollars
  4. Calculate each spouse’s share of the total assignable amount (assignable portion #1 in dollars + assignable portion in dollars #2 ) x 50%
  5. Calculate each spouse’s new monthly pension after assignment= each spouse’s non assignable portion + the previous 50% is their new CPP payment
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3
Q

Survivor benefits

A

Survivor
Age 65 or more = 60% of the contributor’s pension (max $722.25)
Age 45-64: flat rate portion + 37.5% (max $650.72)
Age under 35 - no survivor pension unless disabled or had a dependent child
Children’s (orphan) benefit: may receive a monthly benefit up to age 18 or to 25 if enrolled FT in an approved educational institution

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4
Q

CPP death benefit

A

Lesser of $2500 or the deceased contributor’s monthly retirement pension x 6

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5
Q

CPP Disability Benefits

A

Benefit amount = flat rate + 75% of contributors entitled retirement pension

A child of a disabled contributor may receive a monthly disability benefit up to age 18 or to age 25 if enrolled full time at an approved educational institution

The disability must be severe and prolonged

If eligible, benefits commence at the end of the 4th month after approval

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