Group Plans – Members

Government Plans
  • Government plans exist but are not sufficient as a sole source of retirement income
  • The maximum CPP and Old Age Security payments for a single person in 2008 are approximately $16,643 or about $1,387 per month
  • Tax incentives exist to encourage Canadians to save for their retirement

Consider the following government plans to see how thoroughly you will need to supplement your retirement income with other programs.

Canadian and Quebec Pension Plans (CPP and QPP)

  • CPP and QPP provide retirement income to all Canadians who qualify
  • CPP and QPP contribution levels and benefit formulas are the same, and benefits can be transferred between them. (Some ancillary benefits differ)
  • Members and plan sponsors contribute equally to CPP and QPP up to the YMPE (Yearly Maximum Pensionable Earnings). The employee and employer contribution rates for 2008 are 4.95%
  • Upon retirement, CPP and QPP benefits are adjusted annually on the first of January by a formula related to the Consumer Price Index
  • Get more information on CPP and QPP here

Old Age Security (OAS)

  • OAS payments begin at age 65 for those who meet residency qualifications
  • OAS payments are generally the same for most residents and are increased quarterly in line with the Consumer Price Index
  • Get more information on OAS here

Guaranteed Income Supplement (GIS)

  • GIS is available to any Old Age Security recipient who meets criteria for low income
  • For complete details on all Government sponsored benefit programs, please visit the Human Resources and Social Development Canada website here