CPP Contributions and Benefits

Employees currently pay 4.95 per cent of pensionable earnings as CPP premiums, up to a maximum of $2,479.95 per year, which is then matched by the employer. While the current maximum amount anyone can receive under the CPP retirement benefit is $12,780 per year, most Canadians receiving CPP retirement benefits receives far less, averaging about $7,000 per year.  This is mainly due to the fact that many people take early retirement or have been out of the workforce for some period of time prior to retirement.  With respect to CPP disability benefits, the maximum anyone can recover in 2015 is $15,175.08 per year.

In light of this, many of the Canadians who rely on CPP benefits are underwhelmed by the amount of benefits they receive, and have great difficulty making ends meet on such a modest income.  Perhaps unsurprisingly, a recent Nanos survey conducted for The Globe and Mail found that a large number of Canadians support increasing CPP benefits, with over 50 per cent of those surveyed strongly supporting increasing the benefits threshold. Interestingly, an internal research study conducted by the Department of Finance concluded that there are economic benefits to expanding the Canada Pension Plan.  According to the study’s briefing note, written by then-Finance Minister Jim Flaherty: “In the long run, expanding the CPP would bring economic benefits. Higher savings will lead to higher income in the future and higher consumption possibilities for seniors“.

Denial of CPP Retirement and Disability Benefits

Many people who have applied for CPP benefits are unfairly denied entitlement without proper reason.  It is crucial for those who have had their CPP benefits denied or cut-off to move quickly in order to successfully secure their rights. Oftentimes people representing themselves in CPP disability disputes have trouble advocating for themselves as the rules and procedures surrounding CPP disability benefits can be difficult to understand.  It can be difficult for those without experience to effectively prove entitlement to CPP disability benefits through financial and medical documentation.  This is why it is recommended that anyone who has been denied CPP disability benefits seek help from an experienced legal team to ensure they receive the benefits they deserve.