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1. This webinar is brought to you by CLEONet www.cleonet.ca CLEONet is a web site of legal information for community workers and advocates who work with low-income and disadvantaged communities in Ontario. 2010, Community Law School (Sarnia-Lambton) Inc.

2. Canada Pension Plan and Old Age Security Pension Overview 2010, Community Law School (Sarnia-Lambton) Inc.

3. Please note… The content of this webinar is based on law that was current on the date the webinar was recorded. CLEONet webinars contain general legal information. They are not intended to be used as legal advice for a specific legal problem. For more information on how to find a lawyer or to contact your local community legal clinic visit www.cleonet.ca/need_legal_help 2010, Community Law School (Sarnia-Lambton) Inc.

4. About our presenter… Catherine Manson is a Community Legal Worker and Licensed Paralegal at Flemingdon Community Legal Services with 22 years experience in the legal clinic system. She has been giving presentations on CPP/OAS benefits since 2009. Catherine is a member of the ODSP Action Coalition (Co-Chair of the Train the Trainer Committee), she is past Chair of the Toronto Region ODSP Action Coalition.

5. Flemingdon Community Legal Services 49 The Donway West, Suite 205 Toronto, Ontario M3C 3M9 mansonc@lao.on.ca Federal Income Programs:A Brief Review Catherine Manson Community Legal Worker

6. Sources of Income? • Private • Earnings, Pensions • Federal • Employment Insurance • CPP - retirement and disability • Old Age Security, GIS/GAINS • Veterans Pensions • Provincial • Worker’s Compensation • Ontario Works • Ontario Disability Support Program

7. My Service Account • Online Service • Access and manage personal information for: • Income Taxes • Employment Insurance • Canada Pension Plan • Old Age Security • Requirements: • 18 + years of age • Have contributed to CPP • Information Needed: • Social Insurance Number, first name, last name, date of birth • mother's last name at her birth • Personal Access Code (first time users)

8. Statement of Contributions • Outlines: • All federal benefits you might be entitled to • Number of annual insurable contributions and earnings • It is important to review it regularly (at least once every 5 years) • It is your responsibility to ensure information has been inputted correctly • Estimate will be more accurate the closer you are to the date you want your pension to begin

9. Canada Pension Plan - Retirement

10. Canada Pension Plan - Retirement • Basic Retirement: Age 65 • Paid month after 65th Birthday • Flexible (Early Retirement): Age 60-65 • Amount decreased by 0.5% for each month under age 65 (max. 30%) • Flexible: Age 65-70 • Amount increased by 0.5% for each month over age 65 (max. 30%)

11. Canada Pension Plan - Retirement • Contribution requirements: • Net earnings between $3,500 and $48,300 (2011) or assessed pension credits of spouse (Self Employed $4,435.20) • Employers contribute other half of premiums • Contributions start as early as age 18 and end at age 70 • Process: • Apply 6 months in advance of your retirement • All other applications (CPP-D, Survivor, Children benefits) must be in writing • Review your Statement of Contributions – make sure it is accurate • Benefits can be paid to you even if you no longer live in Canada

12. Canada Pension Plan - Retirement • How much will I receive? • 25% of 1/12 of the average year’s maximum pensionable earnings • Indexed to Consumer Price Index annually • Pension protected through adjustments before calculating • Example: some low-earning periods during your career are "dropped out", so they do not reduce the amount of your pension • Average monthly retirement pension (at age 65) in September 2010 was $504.50 (maximum $960.00 in 2011)

13. Need I.D. documentation Drug costs not covered Taxable benefit If you continue to work and earn more than yearly maximum CPP will be clawed back Pension amount can be reduced if credit splitting with spouse who did not work or worked for a lower salary Asset levels do not matter Benefit unit income does not matter Spousal Survivor Benefits, Orphan Benefits Death Benefit up to $2500 International Payments Reporting process is minimal change in address change in banking Allowed to work to a yearly maximum Pitfalls & Advantages

14. Early Retirement • Decision is yours, you may want to consider: • Other retirement income and plans • Your health • Whether you still earn an income and contribute to the Plan • How long and how much you have contributed • To qualify you need to: • Be between 60 and 64 years old • Stop workingOR • Earn less than a specified amount for the previous two months ($934.17 - Maximum Monthly amount for 2010) • To Cancel: • Submit written cancellation within 6 months of starting CPP • All benefits received must be paid back • Must pay CPP contributions on any earnings while were receiving pension

15. Need I.D. documentation No Drug costs Inadequate benefits require OW/ODSP top-ups and OW/ODSP application rules Taxable benefit Monthly Payment does not increase at age 65 Asset levels do not matter Benefit unit income does not matter Spousal Survivor Benefits, Orphan Benefits Death Benefit up to $2500 Reporting process is minimal change in address change in banking Allowed to work to a yearly maximum Pitfalls & Advantages

16. Child Rearing Provision • Qualifications: • children born after December 31, 1958 • low or no earnings when raising children who were under age of seven • eligible to receive Family Allowance or Canada Child Tax Benefits • still must meet all eligibility requirements to receive any CPP benefit • Pension calculation will exclude periods when income either stopped or was reduced to care for children under age 7 = increased CPP benefits • Either spouse or common-law partner can apply for Child Rearing Provision, but it cannot be used by both for the same period of time

17. Child Rearing Provision • Application Process: • Apply for Child Rearing Provision at the same time as you apply for any CPP benefit • You will need to provide: • an original or certified true copy of your children's birth certificates • proof of the date of entry into Canada for children born outside the country • Other benefits: • Could help meet eligibility requirements for disability benefit • In the event of your death, could help meet contributory requirements to provide benefits to your estate and survivors

18. Pension Sharing • Eligibility: • Both partners are 60 + living as spouses or common-law • One or both must have valid CPP Contributions • Benefit: if one member has had little or no contributions – the couple may share the CPP Pension of the higher earner

19. Credit Splitting • Jan 1/78 to Dec 31/86 • Legal marriages only (no “common law” couples) • Must have lived together at least 3 consecutive years • Marriage ended in divorce or annulment • Must apply for Credit Splitting within 36 months of divorce or annulment • After January 1, 1987 • If divorced or annulled credit splitting mandatory on receipt of request • Spouses must have lived together for 12 or more consecutive months • If there is a loss of benefits to both partners there will be no credit splitting

20. Survivor’s Benefit • Eligibility: • Deceased spouse must have paid into CPP for 1/3 of contributory period or 10 years (whichever is less) • Prove legal marriage or living common-law • Over age 35, have a dependent child or be disabled • Under age 35 with no children  benefits deferred until you apply at age 65 or become disabled • Eligible for CPP in own name  survivor’s benefit combined with CPP-Disability benefit into single monthly payment • Even if you remarry your survivor benefits continue • Benefits: • Under age 65: $364.85 (average) $529.09 (maximum) • Over age 65: $297.72 (average) $576.00 (maximum) • Death benefit: maximum lump-sum of $2500 to estate of contributor

21. Child Benefits • Eligibility: • Dependent child of deceased CPP contributor or person receiving CPP – Disability benefits • Under 18 years old or if 18 – 25 years old must be in an acceptable educational institute full time • Monthly Benefit of $218.50 (for 2011) per month • Taxable • Must apply in writing and confirm full time attendance in school each year

22. I Came From Another Country

23. Social Security Agreements • You must inform CPP if you have lived or worked in another country • Canada has signed International or Reciprocal Social Security Agreements with 50 + countries • Foreign benefits vary according to each country's pension program • If you work in Canada, contribute to CPP, and your employer sends you to work temporarily in another country, a social security agreement with that country might enable you to: • continue to contribute to CPP while you work in that country • have time considered as residence in Canada for purposes of Old Age Security Program • be exempt from contributing to other country’s pension program

24. Reciprocal Agreements Antigua and Barbuda Australia Austria Barbados  Belgium Chile Croatia Cyprus Czech Republic Denmark Dominica Estonia Finland France Germany Greece Grenada Guernsey  Hungary Iceland Ireland Israel (Limited) Italy Jamaica Japan Jersey Korea Latvia Lithuania Luxembourg Malta Mexico Morocco Netherlands New Zealand Norway Philippines PolandPortugal RomaniaSt. Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Slovakia Slovenia Spain Sweden Switzerland Trinidad and Tobago Turkey United Kingdom United States Uruguay Macedonia (not in force)

25. Old Age Security

26. Old Age Security (OAS) • Federal Program • Eligibility: • Over age 65 • For full payment - lived in Canada for 40 years after turning 18 • For partial payment - lived in Canada 10 years or more prior to retirement or after reaching age 65 • Permanent Resident and/or Canadian Citizen • OAS will be suspended for beneficiaries incarcerated in a federal penitentiary for a sentence of two years or more. • OAS will be suspended for beneficiaries who are incarcerated in provincial or territorial correctional facilities as a result of a sentence of 90+ days once the province or territory has signed an information-sharing agreement with Canada (HRSDC).

27. Old Age Security (OAS) • Partial Pension: • Portions of "pie" received can never be increased • Do qualify for any cost-of-living increases • Reciprocal Agreements with some countries • “3 for 1” (need 3 years of residence between ages 18 and 55 for each year of absence between 55 and 65) • OAS will only be paid for 6 months if you move to another country • OAS pension is taxable income • Pensioners who earn individual net income of $67,668 or more as of 2011 (including OAS) have to repay part or all of their pension benefits • Repayment amounts normally deducted from monthly payments • Pension will stop upon death  instruct someone to notify government

28. Old Age Security: Spousal Allowance • OAS will be topped up with Spousal Allowance even if spouse or common-law partner not reached aged 65 • Spousal Allowance stops being paid if spouse’s income above $29,568 • GIS stops being paid at $38,256

29. Guaranteed Income Supplement • Eligibility: • Must be eligible for OAS • Combined income of you and your spouse or common-law partner cannot exceed specific annual income (Single Person: $15,960) • Ontario Government also provides gains amount if qualify for GIS • Income Includes:

30. Appeal Process • Reconsideration of Written Notice of Decision: • Within 90 days of receiving Notice of Decision send letter to Service Canada Regional Director of Income Security Programs • Include: name, address, Social Insurance Number, reason(s) for making appeal, and any new information • Appeal of Reconsideration: • Within 90 days of receiving Reconsideration Decision request Appeal before Review Tribunal • May take 4 to 6 months before hearing scheduled • Appeal based on income may be referred to Tax Court of Canada (whose decision is final and binding) • Appeal of Review Tribunal: • Appeal to Pension Appeal Board and Federal Courts • Can only appeal if error in law in Review Tribunal Decision

31. PENSION ACT and the Canadian Forces Members and Veterans Re-establishment and Compensation Act • There are two separate Acts for members and their families of the Canadian Armed Forces who are veterans, have been injured or died due to military service • Veterans Review and Appeal Board Act (S.C. 1995, c. 18) • Board has full and exclusive jurisdiction to hear, determine and deal with all applications for review that may be made to the Board under the Pension Act or the Canadian Forces Members and Veterans Re-establishment and Compensation Act, and all matters related to those applications.

32. Internet Resources • Service Canada (1-800-277-9914): • CPP: www.hrsdc.gc.ca/eng/isp/cpp/cpptoc.shtml • www.hrsdc.gc.ca/en/publications_resources/service_providers/public_pensions/presentation/page02.shtml (2008) • OAS: www.servicecanada.gc.ca/eng/isp/pub/oas/oas.shtml • GIS: www.servicecanada.gc.ca/eng/isp/pub/oas/gismain.shtml • Veterans Affairs: http://www.servicecanada.gc.ca/eng/audiences/veterans/index.shtml http://www.veterans.gc.ca/eng/ • Service Ontario (1-800-267-8097; TTY 1-800-268-7095) • Ministry of Community and Social Services: www.mcss.gov.on.ca/en/mcss/programs/social/directives/index.aspx • Ontario Works: www.mcss.gov.on.ca/en/mcss/programs/social/directives/ow_Policy_Directives.aspx

33. Where to Find Help… This presentation is not a substitute for legal advice. For information about benefits or for help at anytime – Contact your nearest Community Legal Clinic http://www.legalaid.on.ca/en/locate/default.asp Community Legal Education Ontario Pamphlet – Getting Legal Help – Community Legal Clinics in Ontario Legal Aid Ontario – 1-800-668-8258 33

34. This webinar was brought to you by CLEONet For more information visit the Social Assistance and Pensions section of CLEONet at www.cleonet.ca For more public legal information webinars visit: http://www.cleonet.ca/training 2010, Community Law School (Sarnia-Lambton) Inc.