Annual Report of the Canada Pension Plan 2001-2002
Benefits and Expenditures
The number of people receiving CPP benefits has increased steadily over the past decade, as have expenditures to pay for the increased claims. Figure 2 shows the yearly increases since 1998-1999. Figure 3 shows the percentage of CPP expenditures by type of benefit.
Retirement Pensions
Retirement pensions represent 66 percent of the total number of CPP benefits paid and 70 percent of the total benefit dollars paid out by the CPP in 2001-02. The amount of each contributor's pension depends on how much and how long he or she has contributed and at what age he or she begins to draw the benefits. In March 2002, the monthly maximum retirement pension was $788.75; the average amount paid was $440.34.
Disability Benefits
Disability benefits, paid to eligible contributors and their children, represent nine percent of the total number of CPP benefits paid and 14 percent of the total benefit dollars paid out by the CPP in 2001-02. In 2002, the maximum monthly disability benefit was $956.05; the average amount paid was $719.83. The children's benefit was a flat rate of $183.77
Survivor Benefits
Survivor benefits, paid to the surviving spouse of the contributor and his/her dependent children, represent 23 percent of the total number of CPP benefits paid and 15 percent of the total benefit dollars paid out by the CPP in 2001-02. The amount of the monthly survivor benefit varies depending on a number of factors, including the age of the spouse at death and whether the beneficiary receives other CPP benefits as well.
FIGURE 2 - BENEFITS AND EXPENDITURES BY FISCAL YEAR
Death Benefits
Death benefits represent two percent of the total number of CPP benefits paid and one percent of the total benefit dollars paid out by the CPP in 2001-02. The death benefit is a one-time payment. The maximum payable is $2,500; the average payment in March 2002 was $2,186.10.
Other Provisions
CPP includes several provisions to help keep benefits as high as possible. These include the child rearing drop-out provision, pension sharing, credit splitting and the 15 percent general drop out. If you wish to know more about these, contact us.
FIGURE 3 - PERCENTAGE OF BENEFIT DOLLARS PAID FOR 2001-2002
