In 2014, Canada pension plan payments were issued by direct deposit, if the recipient had enrolled, or by check. Checks were issued within the last three business days of each month.
Most individuals who work in Canada and earn more than a set minimum amount contribute to the CPP. Self-employed individuals make the entire contribution, while those employed by others make one-half the contribution, with the employer contributing the other half. CPP members then collect benefits upon retirement, disability or death.
Retirement benefits are available at age 60 with a reduction for retiring early, at age 65 for full benefits and at age 70 with an increase for extended service. Continued employment after retirement and receipt of benefits results in an increase in the retirement income received after the eventual cessation of employment. The death of a CPP recipient results in payments made to the estate, the surviving spouse or children of the recipient. Severe disability resulting in an inability to work allows for monthly benefits paid to the CPP recipient and his children. CPP allows for the voluntary sharing of benefits with a spouse or common-law partner and for the division of contributions made during the relationship in the event of separation or divorce.