Common use of Canada Pension Plan (CPP) Clause in Contracts

Canada Pension Plan (CPP). The Canada Pension Plan, to which all staff members between the ages of 18 and 65 must belong from their first day of work, provides for payment of a pension, based on the amount of individual earnings (up to a certain maximum), and service from January 1, 1966. Death and survivor benefits are also payable from this plan, and under particular circumstances, a disability pension may also be available. At age 65, staff members may make application to receive a Canada Pension benefit (in which case contributions will cease) or they can postpone applying for a pension, and, provided they are working, continue to pay contributions up to age 70. At age 70, their contributions will cease and they can apply for their pensions in full, whether or not they keep on working and regardless of their earnings. It is possible to apply for Canada Pension benefits any time after age 60 and before age 65, but there is a 1/2 per cent per month reduction for each month of early retirement prior to age 65.

Canada Pension Plan (CPP). The Canada Pension Plan, to which all staff members between the ages of 18 and 65 must belong from their first day of work, provides for payment of a pension, based on the amount of individual earnings (up to a certain maximum), and service from January 1, 1966. Death and survivor benefits are also payable from this plan, and under particular circumstances, a disability pension may also be available. At age 65, staff members may make application to receive a Canada Pension benefit (in which case contributions will cease) or they can postpone applying for a pension, and, provided they are working, continue to pay contributions up to age 70. At age 70, their contributions will cease and they can apply for their pensions in full, whether or not they keep on working and regardless of their earnings. It is possible to apply for Canada Pension benefits any time after age 60 and before age 65, but there is a 1/2 per cent per month reduction deduction for each month of early retirement prior to age 65.