The government of Canada has announced that as of 2019, the Canada Pension Plan (CPP) is being gradually enhanced. That is, if you make higher contributions to CPP, you will receive higher benefits for CPP retirement pension, post-retirement benefit, disability pension and survivor’s pension. The eligibility for CPP benefits however remains the same as before.

An example of how the CPP benefits will be affected by this enhancement is:

Previously, the CPP retirement pension replaced one quarter of a contributor’s average work earnings. The enhancement will now replace one third of the average work earnings one receives after 2019. A contributor’s pension will then increase based on the how much and how long they contribute to the enhanced CPP.

For more information on the CPP enhancement and a table on how the CPP contribution rate will increase, please click here.

Canada Pension Plan Enhancement

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