Canada Pension Plan Post-Retirement Benefit (PRB) – What you need before you start
What you need before you start
Will this affect my other benefits?
Each new PRB will be added to any previously earned PRB and to any other CPP benefits to which you are entitled.
The PRB will allow you to continue to build your CPP retirement income, even if you are already receiving the maximum amount from your pension.
Since the PRB will increase your retirement income, it may have an impact on your eligibility or benefit amounts from the Old Age Security pension, the Guaranteed Income Supplement, or other provincial or territorial programs.
Note: Limitations
Contributions made after the start of the retirement pension do not create eligibility for, or increase the amount of, other CPP benefits. The PRB cannot be divided with a former spouse (credit splitting) or shared with a current spouse (pension sharing).
What are my contributions to CPP?
Contributions toward the CPP are made at the same rates as all CPP contributions:
- Employees contribute 4.95% of their pensionable earnings
- Employers contribute 4.95% of the employee's pensionable earnings
- Self-employed workers contribute both portions for a total of 9.9% of their net pensionable income.
Example
Jane is a CPP retirement pension recipient who, in 2013, is 65 years of age. She will receive gross earnings of $57,000 annually until she reaches age 70. Below, you will find a table outlining how much she would contribute if she continues making voluntary contributions until age 70 and what her PRB payments would be each year Footnote 1 .
| Date | Age | Contribution |
|---|---|---|
| 2013 | 65 | $2,356.20 |
| 2014 | 66 | $2,406.79 |
| 2015 | 67 | $2,458.39 |
| 2016 | 68 | $2,511.02 |
| 2017 | 69 | $2,564.71 |
Jane would receive a new PRB following each year of contributions. Each year, her new PRB would be added to the previous PRBs she had collected. If she passes away at age 87, between the ages of 66 and 87, she would collect a total of $40,493.61 in PRB payments.
Note: Amounts in this table
CPP benefits are revised each year, in January, to reflect changes to the cost of living. Note, however, that the payment amounts shown below are not indexed.
| Age | New PRB Payment | Total annual PRB Payments | Accumulated PRB Payments |
|---|---|---|---|
| 66 | $337.15 | $337.15 | $337.15 |
| 67 | $371.99 | $709.14 | $1,046.30 |
| 68 | $408.02 | $1,117.16 | $2,163.46 |
| 69 | $444.10 | $1,561.26 | $3,724.71 |
| 70 | $481.46 | $2,042.72 | $5,767.43 |
| 71 | $0.00 | $2,042.72 | $7,810.15 |
| 72 | $0.00 | $2,042.72 | $9,852.86 |
| 73 | $0.00 | $2,042.72 | $11,895.58 |
| 74 | $0.00 | $2,042.72 | $13,938.30 |
| 75 | $0.00 | $2,042.72 | $15,981.01 |
| 76 | $0.00 | $2,042.72 | $18,023.73 |
| 77 | $0.00 | $2,042.72 | $20,066.45 |
| 78 | $0.00 | $2,042.72 | $22,109.16 |
| 79 | $0.00 | $2,042.72 | $24,151.88 |
| 80 | $0.00 | $2,042.72 | $26,194.60 |
| 81 | $0.00 | $2,042.72 | $28,237.31 |
| 82 | $0.00 | $2,042.72 | $30,280.03 |
| 83 | $0.00 | $2,042.72 | $32,322.75 |
| 84 | $0.00 | $2,042.72 | $34,365.46 |
| 85 | $0.00 | $2,042.72 | $36,408.18 |
| 86 | $0.00 | $2,042.72 | $38,450.90 |
| 87 | $0.00 | $2,042.72 | $40,493.61 |
Note: PRB amount
The maximum PRB for a single year is equal to 1/40th of the maximum CPP retirement pension. If you contribute less than the maximum, the amount of the year's PRB will be proportional to your contribution. For example, contributing half of the maximum will generate 50 percent of the maximum PRB.
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