Canada’s Social Security System. Canada has 2 main social security plans. These; Canada is divided into Pension Plan (CPP) and Old Age Security plans. Let’s examine both plans here.
Canada Pension Plan
CPP (Canada Pension Plan) came into effect on 1.1.1966 and is an institution where employees pay insurance premiums as officially insured. Employees have to pay a premium to this institution. A high income person pays a large amount of tax as well as pays CPP premiums, and his retirement pension becomes higher at the rate that the excess premium is paid.
We can list the main features of the Canada Pension Plan as follows:
-He/She pays a pension at the age of 65, and a partial (30% missing) pension at the age of 60.
-It is necessary to pay a premium at least once.
-Paying a premium at least once and quitting working (can be re-employed when the monthly starts) or to fill the age limit.
-Pension pensions are increased, and consumer prices and inflation rates affect pensions.
The conditions for benefiting from the pension are listed as follows:
-When calculating the salary, how much premium you paid in how long will be calculated.
-How old you retire affects your salary.
-Right holders (spouses and children) of the deceased are given monthly.
-When the insured person dies and his wife (woman) has no income, Survivor Benefit is paid to his spouse between the ages of 60 and 65.
-“Old Age Security” premiums are paid after the age of 65.
-The children of the deceased insured person are entitled to orphans’ pension until the age of 18, if they are students, until the age of 25.
-The highest monthly salary in 2007 was $ 863.75.
Self-Employed – Status of Self Employed
Those who have an annual net income of $ 3600 (excluding taxes) can pay premiums.
Those who have an income below this figure or who declare a loss cannot pay premiums.
In order for each company partner to pay a premium, each must have a net income of $ 4200.
-When the person retires, he declare that his salary will not be left to my spouse when he dies, in case of death his wife will not receive a salary, but he / she will receive more than he deserves in this case.
-No CPP deduction is received from the company partner or owners when companies declare losses or profits below $ 3600 USD.
-If the owner of the company or its partners receive dividends from their companies instead of salaries (even if they get a higher number), no CPP deduction is charged.
-If self-employed people have not paid a CPP premium, they are not registered with CPP.
-CPP deduction is not made for people aged 69 and over, even if they work.
-If the amount of disability pension recipients from the federal government is below the minimum subsistence allowance, it can be received from the State government (ODSB) at a discretion.