The CPP is the Canadian version of U.S. Social Security. As with Social Security, you can start shooting early at age 60, but you get a higher benefit if you`re delayed. The CPP is also based on the incomes and contributions of workers and employers in the system. The more you earn and the more you work, the higher the benefits. However, the CPP tends to be inferior to social security. So where do you stand? Are you caught in the middle of this unique problem? You`re not alone in looking for a way forward. Since rules and agreements are constantly in circulation, it is important to examine your options through the lens of current cross-border agreements. For more information, please contact Cardinal Point. Since Canada`s social security plan includes a specific retirement plan in the province of Quebec, an additional agreement was entered into with Quebec to extend the agreement to that province, also with effect from August 1, 1984.
The terms of the agreement between the United States and Canada and the agreement between the United States and Quebec are very similar and, unless otherwise stated, references to the agreement between the United States and Canada also apply to the agreement between the United States and Quebec. Below you will find a table that shows how you are entitled to the different benefits without relying on a tabularization agreement. This does not apply to eligibility on the basis of spouse or disability benefits, which in some cases may be an option. The agreement signed in Ottawa on March 11, 1981 entered into force on August 1, 1984. Amended by a report adopted on 10 The Additional Agreement signed in Ottawa on 1 May 1983, which entered into force on 1 August 1984, and by a second Supplementary Agreement signed in Ottawa on 28 May 1996, entered into force on 1 October 1997. The Administrative Agreement signed in Ottawa on May 22, 1981, came into force on August 1, 1984; amended by a supplementary agreement signed in Ottawa on 10 May 1983 and entered into force on 1 August 1984. See also the agreement between the United States of America and the Province of Quebec on social security. NOTE: As shown in the table, a U.S.
worker employed in Canada can only be covered by U.S. Social Security if they work for a U.S. employer. However, to be eligible to have your U.S. credits counted, you must have acquired at least one year of credit under the CPP or QPP. It is not necessary to take into account US Social Security credits to determine entitlement to CPP or QPP retirement benefits, as anyone who has contributed to at least one of the two schemes may be entitled to an old-age pension or a reduced retirement pension from the age of 65. If you work as a worker in the United States, you are normally covered by the United States, in accordance with the agreement, and you and your employer only pay Social Security taxes in the United States. When you work as a worker in Canada, you are normally covered by Canada, and you and your employer only pay social security taxes (contributions) in Canada.