Canada Pension Plan – After you’ve applied
Due to the coronavirus disease (COVID-19) outbreak, there are changes to this program.
Once you start your CPP retirement pension, you’ll receive payments for the rest of your life.
Your monthly payment will increase in January of each year if there’s an increase in the cost of living, as measured by the Consumer Price Index. Your monthly payment won’t decrease if the cost of living goes down.
Your payment will be directly deposited to your bank account every month. If you didn’t choose direct deposit, a cheque will be mailed to you during the last 3 business days of each month. View payment dates.
You will be taxed
Your CPP retirement pension counts as income and is taxable.
Taxes aren’t automatically deducted. You can ask that federal income tax be deducted from your monthly payments by:
- signing into your My Service Canada Account, or
- completing the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP3520CPP) form and mailing it to us or dropping it off at a Service Canada office
If you do not ask for monthly tax deductions, you may have to pay your income tax each quarter. For more information, contact the Canada Revenue Agency (CRA) Tax Services Office.
If you live outside of Canada
We will automatically deduct the non-resident tax from your payments at a rate of 25% or less, depending on whether Canada has a tax treaty with the country you live in. You can ask for a lower amount to be deducted using the same form.
If you disagree with the decision
If you disagree with the decision, you may ask to have the decision reviewed. You must request this review in writing within 90 days of receiving your decision letter.
Your application will be reviewed by Service Canada staff who were not involved in making the original decision on your application. To request a review of the decision:
- complete and send us the Request for Reconsideration of a Canada Pension Plan Retirement Pension (ISP-1238) form
- send us a written request to review the decision and include:
- your name, address, telephone number and Social Insurance Number or Client Identification Number
- a detailed explanation of why you do not agree with the decision
- any new information that could affect the decision
Sign and date your written request and send it by mail to the return address on the decision letter or take it in person to a Service Canada Centre.
Reconsiderations can take several months to complete, depending on the case. Service Canada will review your application again and send you a (new) decision by mail.
Cancel your CPP retirement pension after starting
You can cancel your CPP retirement pension up to 12 months after you start receiving it. You must request the cancellation in writing. You must also pay back all of the CPP income you’ve received. To cancel your benefit, contact Service Canada.
Cancel CPP retirement pension after a death
If you're reading this following the loss of a loved one, please accept our condolences.
When someone dies, please inform us as soon as possible to avoid overpayment. Find out how to cancel CPP benefits on behalf of a deceased person.
The estate and survivors may be eligible to receive other CPP benefits:
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