ARCHIVED CD 1994-011
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Note This document has been modified. The changes are identified by a vertical line "|". Revision (|)
| March 9, 1994 (revised June 16, 2010)
| SUBJECT: Cessation of Canada Pension Plan (CPP) Contributions for Persons Still Employed After Age 65 and in Receipt of CPP and Quebec Pension Plan (QPP) Benefits
1.1 The purpose of this directive is to provide information concerning the above-noted subject.
2.1 Active employees who become aged 65 on or after September 9, 1993, must now continue to contribute to the Public Service Superannuation Account (PSSA) - Fund 1 at the integrated rate regardless of whether they are in receipt of CPP/QPP benefits (Superannuation Administration Manual/Special Bulletin 1993-8 dated September 10, 1993).
| 2.2 Prior to September 9, 1993, departments were notified by the Public Service Pension Centre (PSPC) - formerly the Superannuation Directorate that PSSA - Fund 1 and CPP/QPP deductions were to cease when an employee became entitled to CPP/QPP benefits. Since the PSPC no longer provides this notification, personnel offices may not be informed that an employee is in receipt of CPP/QPP benefits. As a result, the CPP deductions may not be stopped on time for these employees.
| 2.3 Personnel offices should advise all their employees who are aged 65 and over about this procedure as soon as they start to receive pension benefits from CPP/QPP. Form DSS 2265 (Pension Information Release) can be used to solicit this information. Upon receipt of this notification to the effect that the employee is in receipt of CPP/QPP benefits, the personnel office must immediately advise the paying office to stop the CPP deduction, if applicable.
| 2.3.1 It must be noted that, effective January 1, 1998, the reform of the QPP introduced a measure which declares that employees working in Quebec and in receipt of a QPP or CPP retirement pension, or who have reached 70, must contribute to the QPP. Therefore, the above changes to the PSPC's procedures will only impact employees in receipt of CPP. For more information on the changes to the QPP, please consult the Compensation Directive 1998-009.
| 2.4 CPP contributions must be deducted until the end of whichever occurs first:
- | The month before the employee receives the CPP/QPP retirement pension;
- | The month in which the employee turns 70.
| 2.5 In cases where a refund of over-deducted CPP contributions may be required, there are two possible methods of payment:
- Follow the regular refund procedures in the Personnel-Pay Input Manual (PPIM); or
- Tell the employee that the refund will be handled via his income tax return at year end.
| 3.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
| 3.2 Questions regarding individual cases must be directed to the PSPC at 1-800-561-7930.
Original Signed by
Government Operational Service
Reference: CJA 9211-2
- Date modified: