May 9, 2009

Canada Pension Plan

The Canada Pension Plan is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family against the loss of income due to retirement, disability and death.

Your contributions to the Canada Pension Plan provide you with a stable and dependable pension you can build on for retirement. It also provides you and your dependents with basic financial protection if you become disabled or die.

This entry is to provide a brief information about Canada Pension Plan - benefits, rates, application forms and contact information.

Canada Pension Plan Benefits

  • Retirement Pension - A CPP retirement pension is a monthly benefit paid to people who have contributed to the Canada Pension Plan. The pension is designed to replace about 25 percent of the earnings on which a person's contributions were based. You qualify for a CPP retirement pension if you have made at least one valid contribution (payment) to the Plan and if you are at least 65 or you are between 60 and 64, and meet the earning requirements set out in the legislation.

  • Disability Benefits - The Canada Pension Plan (CPP) disability benefit is available to people who have made enough contributions to the CPP, and whose disability prevents them from working at any job on a regular basis. The disability must be long lasting or likely to result in death. People who qualify for disability benefits from other programs may not qualify for the CPP disability benefit.

  • Survivor Benefits - Canada Pension Plan survivor benefits are paid to a deceased contributor's estate, surviving spouse or common-law partner and dependent children. There are three types of benefits:

    - The death benefit is a one-time payment to, or on behalf of, the estate of a deceased Canada Pension Plan contributor;
    - The survivor's pension is a monthly pension paid to the surviving spouse or common-law partner of a deceased contributor;
    - The children's benefit is a monthly benefit for dependent children of a deceased contributor.

  • Children's Benefits for Students aged 18 to 25 - If you are a full-time student between the ages of 18 and 25 and your parent or guardian is receiving a Canada Pension Plan (CPP) disability benefit or has died, you may be eligible for a monthly payment from the CPP.

    You may be eligible for a monthly payment if the person who raised you was a CPP contributor and has died or is receiving a CPP disability benefit – even if that person was not legally your parent or guardian. For simplicity, the words "parent" and "child" will be used in this document to cover all such relationships. Once you turn 25 you are no longer eligible for these benefits.

  • Canada Pension Plan Payment Rates

    The rates if there are increases in the cost of living as measured by the Consumer Price Index.

    Canada Pension Plan Payment Rates

    Type of benefit

    Average monthly benefit
    (January 2009)
    Maximum monthly
    Disability benefit $817.39 $1,105.99
    Retirement pension (at age 65) $501.82 $908.75
    Survivors benefit (under age 65) $367.14 $506.38
    Survivors benefit (age 65 and over) $299.11 $545.25
    Children of disabled contributors benefit $213.99 $213.99
    Children of deceased contributors benefit $213.99 $213.99
    Combined survivors & retirement benefit (pension at age 65) $714.41 $908.75
    Combined survivors & disability benefit $959.71 $1,105.99
    Death benefit (max lumpsum) $2,240.63 $2,500.00

    Canada Pension Plan Application Forms
    All application forms are available in electronic form. Click here to download applicable application forms for the programs and services offered under Canada Pension Plan.

    Canada Pension Plan Contact Information
    For more information about Canada Pension Plan, visit