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Facts About Changes to the Canada Pension Plan (CPP) - January 1998

January 1998

Securing the future of Canada's retirement income system is a key priority for the Government of Canada and Canadians alike. When the Canada Pension Plan was introduced in 1966, the face of Canada's population was entirely different than it is today. A quickly growing seniors' population, a generation soon to retire, and a rapidly shifting economy has meant that changes to the CPP were essential to maintaining an affordable, sustainable, and fair system for everyone.

To guarantee that the Canada Pension Plan will be there for Canadians in the future, the Government of Canada has put in place a strong and balanced package of changes to strengthen the Plan's financing, improve the investment practices, and moderate growth in costs.

Although the Government of Canada administers the Canada Pension Plan, changes to the Plan cannot be made without the agreement of 2/3 of the provinces with 2/3 of the population. This will ensure that the CPP is there for Canadians today and tomorrow - not just for workers when they retire, but also for Canadian workers and their families should they become disabled or die. These changes will maintain the Canada Pension Plan Fund, to keep future contribution rates down, and to strengthen Canada's retirement income system.

The chart on the next page shows the Canada Pension Plan before and after the changes. It is important to remember that these changes do not affect:

  • CPP retirement pensions, disability benefits, survivor benefits or combined benefits that were being paid on December 31, 1997;
  • the future retirement pensions of anyone over 65 on December 31, 1997.

All CPP benefits, except for the death benefit, remain fully indexed to inflation. Retirement ages - early, normal, or late - remain unchanged.


Canada Pension Plan Survivor Benefits
If your survivor is: Then the calculation is:
  • age 65 or more
  • 60 per cent of your "calculated" retirement pension
  • age 45 to 64
    or
  • under age 45
    and
    • disabled (according to CPP legislation)
      or
    • raising your dependent child
  • a flat rate portion
    plus
    37.5 per cent of your "calculated" retirement pension
  • under age 45
    and
    • not disabled (according to CPP legislation)
      and
    • not raising your dependent child
  • as above (age 45 to 64)
    minus
    1/120 for each month your spouse or common-law partner is under age 45 at the time of your death
  • under age 35
    and
    • notdisabled (according to CPP legislation)and
    • notraising your dependent child
  • not paid until your spouse or common-law partner reaches age 65
    or
    becomes disabled

For more information

If you need more information about the Canada Pension Plan, please call free of charge:

1 800 277-9914 English;
1 800 277-9915 French.

If you have a hearing or speech impairment and you use a TDD/TTY device please call 1 800 255-4786.

CPP Main Menu

Date Modified: 2004-02-27

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