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What you need to know about Working in Retirement and Post Retirement Benefit

CPP Overview

The Canada Pension Plan (CPP) ensures that in the case of retirement, disability, or death, a partial replacement of earning will be provided to CPP contributors and their families. CPP contributions are made by most of Canadians who work outside of Quebec.


Post Retirement Benefit (PRB)

Post-Retirement Benefit (PRB) was introduced in 2012 allowing Canadians to continue contributing to their CPP while they are still working. The PRB contributions will be added to the monthly CPP pension, even if the pensioner is already receiving the maximum CPP retirement amount.

CPP recipients who are 64 years old or less and still working must continue to contribute to their CPP

CPP recipients who are 65 years old or older and still working have the option to contribute to their CPP


To stop or continue to contribute to the PRB:

CPT30 form needs to be filled out if you wish to stop contributing to the PRB at age 65 or thereafter. A copy of the form has to be sent to your employer, and the original form also needs to be sent to the Canada Revenue Agency (CRA).

You can start contributing once again by submitting section D of a new CRA form CPT30 to CRA and send a copy of the form to your employer.

However, only one change can be made per calendar year. Contact CRA if you are self-employed.


Post-Retirement Benefit (PRB) Calculation

Three factors affect the calculation of your PRB:

  • Your income level while working in retirement
  • The contributions made to CPP the previous year
  • Your age when you started contributing to the PRB


The Canadian Retirement Income Calculator

The Canadian Retirement Income Calculator (CRIC) could be used to help you estimate the amount of your PRB. It can also calculate an estimated number of your CPP and OAS.


The PRB Formula (Monthly Payment)

Post-Retirement Benefit (PRB) Formula - Cascadesfs




References: cpp-post-retirement-benefit/

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