Human Resources Legislative Update
Regulatory amendment proposed for CPP Post-Retirement Benefit elections
Date: October 11, 2011
The federal government has proposed a regulatory amendment to the Canada Pension Plan Regulations which prescribes the manner of employee elections (or revocations) regarding the new Post-Retirement Benefit (PRB), which will be available under the Canada Pension Plan (CPP) effective January 1, 2012.
The PRB extends participation in the CPP to those employees (and self-employed workers) who are 60 years of age or older and who receive CPP benefits while continuing to work. Contributions towards the PRB will be mandatory for employees who are at least 60 years of age but under the age of 65 and their employers, and optional in respect of employees who have reached 65 years of age but who are under the age of 70. Individuals in the latter group will be required to contribute towards the PRB unless they elect to opt out.
The proposed regulatory amendment will also extend the time limit for payments of CPP contributions where an election has been made in respect of self-employed earnings.
Interested persons may make comments on the proposed regulatory text within 30 days after publication of the notice of the regulation (Canada Gazette, October 8, 2011).