On the Canada Pension Plan, there are two issues that I thought may be of interest to retirees.

CPP Contributory Period
The first deals with those of you who have stayed at home or only worked part time in order to care for a child under the age of seven. These years can be removed from a person's contributory period which means you are not penalized for these years when they do the calculation for CPP. Since CPP contributions started in 1966, this would apply only to the years after this date.

The current application for CPP asks the questions regarding these years but for those of you who have been receiving CPP for more than five or six years it is possible that your CPP calculation did not take these years into consideration. This can be checked very easily by phoning 1-800-277-9914. I was told that it is never to late to apply and that any additional amounts owed would be paid retroactively.

Sharing CPP Pensions
The second item refers to a provision that allows spouses or common-law partners in a continuing relationship to share their CPP pensions. This would be a voluntary sharing of retirement pension and is not permanent. The total amount paid out monthly does not change but each person receives a T4 slip for the amount received. Since CPP benefits are taxable, this could be helpful to some couples.

Both individuals in the relationship must be at least 60 years old. One or both of the spouses must have valid contributions and have applied for their CPP retirement pension. Further information can be obtained at the same phone number listed above.

(Excerpts from an article that appeared in KIT, Winter 2003) .

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