What are the changes?
Individuals 65 years of age or younger
Accounting GTA
Starting January 1, 2012, you will now have to contribute to the CPP if you are:
- receiving a CPP or QPP
retirement pension; and - working.
Individuals 65 to 70 years of age
Starting January 1, 2012, unless you elect to stop contributing to the CPP, you will now have to contribute to the CPP if you are:
- receiving a CPP or QPP retirement pension; and
- working.
How do you stop contributing to the CPP?
The method is different if you are an employee, self-employed or if you are both an employee and self-employed.
Note
To get the maxium benefit of CPP, seniors should apply for CPP at age 65 or 70 by your accountant GTA. To find out how the changes may affect your CPP benefits, go to Service Canada Web site or call your Accountant in Greater Toronto Aarea (GTA).
Employee
If you are an employee, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can elect to stop contributing to the CPP.
You can elect to stop contributing to the CPP, by:
- completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan,
or Revocation of a Prior Election; - giving a copy to all your employers; and
- sending the original to the Canada Revenue Agency.
The election takes effect on the first day of the month following the date you give a copy of the completed Form CPT30 to your employer. For example, if you give Form CPT30 to your employer on June 22, 2012, the election will take effect on July 1, 2012.
Notes
You cannot elect to stop contributing to the CPP until you are at least 65
years of age.
The election stays in effect until you turn 70 years of age or until you revoke the election.
Self-employed
If you are self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can elect to stop contributing to the CPP.
To do so, complete the applicable section of Schedule 8, CPP
Contributions on Self-Employment and Other Earnings for 2012 and
file it with your Income Tax and Benefit Return for 2012 by your Payroll Accountant in GTA. Do not use Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election.
You cannot elect to stop contributing to the CPP until you are at least 65 years of age. The earliest month an election can take effect is the first month following the month of your 65th birthday. For example, if you turn 65 on July 15, 2012, the earliest month an election can take effect is August 2012.
Note
The election stays in effect until you turn 70 years of age or until you revoke the election.
Individuals
receiving both pensionable earnings and self-employed earnings
If you are both an employee and self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can
elect to stop contributing to the CPP.
You can elect to stop contributing to the CPP, by:
- completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election;
- giving a copy to all your employers; and
- sending the original to the Canada Revenue Agency.
The election takes effect on the first day of the month following the date you give a copy of the completed Form CPT30 to your employer. This date applies to both your pensionable earnings and self-employment earnings. For example, if you give Form CPT30 to your employer
on June 22, 2012, the election will take effect on July 1, 2012.
Notes
You cannot elect to stop contributing to the CPP until you are at least 65
years of age. The election stays in effect until you turn 70 years of age or until you revoke the election.
For more information: