Statistics on CPP monthly maximum amounts for new benefits

Statistics on CPP monthly maximum amounts for new benefits Employment and Social Development Canada (ESDC) calculates Canada Pension Plan (CPP) monthly maximum benefit amounts for new beneficiaries. CPP monthly maximum new benefit amounts are for recipients starting to receive benefits in a particular month and year. Thereafter, most benefits are indexed annually according to the Consumer Price Index. As of 2019, the CPP is being gradually enhanced every month. CPP benefits now include a base (representing the Plan, as it existed pre-2019) plus an enhancement component. Due to its gradual implementation, the maximum benefits of the enhancement component are increasing on a monthly basis. Before 2019, the CPP retirement benefit replaced 25% of employee earnings up to the yearly maximum pensionable earnings (YMPE). With the enhancement, the retirement benefit will eventually replace 33.33% of employee earnings. The contributions to the CPP enhancement are being phased-in over seven years. There are two portions to the enhancement: • The first portion aims to increase contributions within the existing range of earnings (up to YMPE) and takes place over five years (2019-2023). • The second portion aims to set a higher limit of earnings (increase the YMPE) and will be phased over two years (2024-2025). Only the first portion is currently being phased in. Benefits under the CPP enhancement will continue to grow as individuals work and contribute. Consequently, the maximum CPP pension for new beneficiaries will continue to increase on a monthly basis until the enhancement reaches full maturity in 2065, reflecting the impact of those additional contributions. The dataset presents the monthly maximum amount of each CPP benefit (including combined benefits) from 1967 to 2019. From 1967 to 2018, the monthly maximum amount remained the same during the year, while from 2019 onward, the maximum amount changes every month with the enhancement. Amounts for the post-retirement benefit, children of disabled contributor benefit, children of deceased contributor benefit and death benefit will continue to remain constant throughout the year, as they are not affected by the enhancement. For further information on CPP benefits: Canada Pension Plan - Overview - Canada.ca https://www.canada.ca/en/services/benefits/publicpensions/cpp.html and CPP enhancement: Canada Pension Plan enhancement - Canada.ca https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-enhancement.html. 2022-06-08 Employment and Social Development Canada open-ouvert@tbs-sct.gc.ca Society and CultureCanada Pension PlanCPPretirementbenefitsCPP enhancement Statistics on CPP monthly maximum amounts for new benefitsCSV https://open.canada.ca/data/dataset/e547539b-7fc6-4879-be54-3d1f80ac9e9e/resource/b47a541b-2e8a-46e1-9586-4e4b0496eaa7/download/20220101-ntauxm-nmonthrate.csv Statistics on CPP monthly maximum amounts for new benefitsXLS https://open.canada.ca/data/dataset/e547539b-7fc6-4879-be54-3d1f80ac9e9e/resource/9d79e08c-748b-43e9-965c-f45fd0e9b1a5/download/20220101-ntauxm-nmonthrate.xlsx

Employment and Social Development Canada (ESDC) calculates Canada Pension Plan (CPP) monthly maximum benefit amounts for new beneficiaries. CPP monthly maximum new benefit amounts are for recipients starting to receive benefits in a particular month and year. Thereafter, most benefits are indexed annually according to the Consumer Price Index.

As of 2019, the CPP is being gradually enhanced every month. CPP benefits now include a base (representing the Plan, as it existed pre-2019) plus an enhancement component. Due to its gradual implementation, the maximum benefits of the enhancement component are increasing on a monthly basis.

Before 2019, the CPP retirement benefit replaced 25% of employee earnings up to the yearly maximum pensionable earnings (YMPE). With the enhancement, the retirement benefit will eventually replace 33.33% of employee earnings. The contributions to the CPP enhancement are being phased-in over seven years.

There are two portions to the enhancement:

• The first portion aims to increase contributions within the existing range of earnings (up to YMPE) and takes place over five years (2019-2023).

• The second portion aims to set a higher limit of earnings (increase the YMPE) and will be phased over two years (2024-2025).

Only the first portion is currently being phased in.

Benefits under the CPP enhancement will continue to grow as individuals work and contribute. Consequently, the maximum CPP pension for new beneficiaries will continue to increase on a monthly basis until the enhancement reaches full maturity in 2065, reflecting the impact of those additional contributions.

The dataset presents the monthly maximum amount of each CPP benefit (including combined benefits) from 1967 to 2019. From 1967 to 2018, the monthly maximum amount remained the same during the year, while from 2019 onward, the maximum amount changes every month with the enhancement. Amounts for the post-retirement benefit, children of disabled contributor benefit, children of deceased contributor benefit and death benefit will continue to remain constant throughout the year, as they are not affected by the enhancement.

For further information on CPP benefits: Canada Pension Plan - Overview - Canada.ca

https://www.canada.ca/en/services/benefits/publicpensions/cpp.html

and CPP enhancement: Canada Pension Plan enhancement - Canada.ca

https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-enhancement.html.

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