Even earlier than that column ran early in June, and seemingly fairly independently of the OAS mailing, I acquired one other Service Canada mailing, this one targeted on the Canada Pension Plan or CPP. I discovered this curious since, in contrast to OAS, I might have utilized for early CPP advantages 5 years in the past however by no means acquired a pro-active mailing till now.
True, each letters originated with the Scarborough Regional workplace of Service Canada: OAS was dated April 18th and the CPP one April 26th, though neither referred to the opposite. As I associated within the OAS piece, making use of for OAS was a snap as soon as I reached a dwell individual on the telephone: inside minutes it was arrange so deposits would mechanically seem in my checking account, internet of taxes, late within the month after I flip 65.
In contrast, based mostly on the second mailing, the CPP utility course of seems to be comparatively extra onerous. For starters, the letter states that “CPP advantages aren’t paid till you’ve gotten submitted an utility.” That’s in distinction with the OAS letter, which stated OAS advantages would begin mechanically with no additional motion on my half, except I needed to tweak the association.
The CPP mailing contains some types to fill out and a brown envelope, which comprises neither Service Canada’s handle nor a stamp. It additionally helpfully suggests you can apply on-line at www.servicecanada.gc.ca. You want your Social Insurance coverage quantity, start date, marital standing and banking info for direct deposits in Canada. If exterior Canada that you must go to www.directdeposit.gc.ca
The CPP letter informs me that “based mostly in your previous contributions,” I might obtain $969.50 per thirty days “In case your pension had been to start now.” However that’s only a guesstimate; the precise quantity will probably be specified as soon as they obtain your utility.
An accompanying info sheet lays out the same old clarification that the later you wait in your pension to begin, the extra you’ll obtain. Intriguingly, it provides that “For those who delay making use of in your CPP retirement pension after you flip 70, you threat dropping advantages.” Then in daring, it provides: “There is no such thing as a monetary profit in delaying your pension after age 70.”
Service Canada considers the complete CPP pension to be the one which begins the month after your 65th birthday. Perhaps that’s why they by no means reached out to me the 5 years prior. And it lays out a desk that explains how the pension will rise the longer you wait after age 65. As of 2016, the pension will rise by 0.7% for each month you delay receipt after 65, which means that in the event you wait till 70 it will likely be 42% greater.
When you apply, Service Canada critiques it to be sure to’re eligible for advantages and it’ll ship one other letter informing you of their resolution: it will likely be despatched “no later than one month previous to the date when your advantages are to begin” and it’ll additionally let you know when your funds begin.