Canadian seniors may be happy to hear that they will be getting an extra $2,460 a year. As part of an effort to help seniors deal with the financial problems caused by inflation, this new benefit will be added to the CPP as an extra amount. In this piece, we’ll talk about what the $2,460 extra pension that’s coming to Canada is, how it works, when it’s coming, and who can get it. Read the Whole Article to learn more about this.
$2460 More Pension Is on The Way
An improvement to the Canada Pension Plan (CPP) will give qualified Canadians more benefits. This is what the $2460 Additional Pension Plan coming for Canada means. The Federal Government and the Canada Revenue Agency (CRA) have agreed to make this plan, which will start in 2023, to help people and their families make more money in retirement.
With this plan, each beneficiary will get an extra $2,460 on top of their present CPP benefits. However, the exact value will depend on the CRA’s pension payouts, where each recipient will get a share equal to the total amount they contributed.
Information on Canada’s $2,460 Extra Pension
| Name | $2460 Additional Pension |
| Country of Origin | Canada |
| Regulating body / Department | Canada Revenue Agency (CRA) |
| Year | 2024 |
| Category | Government Aid |
| Objective | Reduce debt burden on elders due to rising inflation. |
| Benefits | Additional benefits on Canada Pension Plan (CPP). |
| Expected Additional Amount | C$ 2460 |
| Applicable persons | Old age and retirees already receiving CPP payments. |
| Age Limit | 65+ years |
| Expected month of payment | April, 2024 |
| Payment mode | OnlineOffline |
Learning About the $2,460 Extra Pension Plan that Is Coming to Canada
The $2,460 extra pension that is coming to Canada is a new benefit that will be added to the CPP as part of a larger improvement. The change would be a long-term part of CPP reform that aims to raise Canadians’ retirement income while also making it safer and more stable. There are two parts to the CPP enhancement:
- Phase 1 (2019–2023): The maximum pensionable earnings (MPE) was raised to $66,600 and the CPP payment rates were raised.
- In Phase 2 (2024–2025), a higher earnings cap and a second CPP contribution (CPP2) are put in place. If you pay 4% into CPP2, your MPE in 2024 will be $73,200.
The $2,460 extra pension is part of the CPP enhancement that comes from the second step. It shows how much a person can get CPP2 benefits in 2024 if they pay into the program with a salary above the MPE. Here’s how to do the math:
$2460 = (MPE from CCP2 – MPE from CPP1) x % of input x 12 months
Make sure you know that this is the most money that a person can get by taking the most money from both stages. Changes can happen to it based on things like work experience, contribution rates, MPE changes, and the date of retirement.
Criteria for Being Eligible for Canada’s New $2460 Pension Plan.
Even though it’s not yet time, the most common requirements for qualifying would be:
1. The person must be at least 60 years old.
2. He needs to be a Canadian citizen and have a legal Social Insurance Number (SIN).
3. He has to be getting CPP or CPP disabled.
4. He had to pay into CPP2 if he made more than MPE.
5. Work done in Canada or credits from a spouse or partner are valid ways to donate.
6. Residents who work outside of Canada must bring proof of employment with them when they return to Canada within 6 months of leaving their job.
$2460 More Dates for Pension Payments
The times below show when the CPP will be paid if the $2,460 Additional Pension Plan is put into place:
| February 24, 2024 |
| April 27, 2024 |
| April 27, 2024 |
| May 26, 2024 |
| June 26, 2024 |
| July 27, 2024 |
| August 26, 2024 |
| September 26, 2024 |
| October 27, 2024 |
| November 25, 2024 |
| December 22, 2024 |
How Do I Apply for The Canada Additional Pension and Find out What’s Going On?
There won’t be a different form to fill out to get the extra $2,460 pension. If it is put into place, it will be added to the CPP on the dates given in 2024. But if someone wants to apply, they can use My Service Canada Account (MSCA) to do so and then check the progress.
Check to See if The $2,460 Extra Pension Plan Is Going to Happen.
Status: The receivers are still waiting for their status. As soon as the government gives the orders and CRA carries out the plan, they should get the money in February or April.
Monthly Benefit: The extra $2,460 in pension is not a bonus or a one-time gift. It is a monthly payment that qualified pensioners would get if they paid into the CPP2 and made more than the MPE up to the second earnings ceiling in 2024 or later.
Not Universal: This benefit is not set in stone; it’s just the most a person can get based on how much they make and contribute. How much you get varies on your age, work history, and when you retire, among other things.
Earned Benefit: The $2,460 extra pension isn’t free; seniors have to pay into the CPP2 to get it. Just like standard CPP contributions, these are taken out of both employees’ and employers’ pay.
No Add-on or Replacement: This is an extra benefit that doesn’t replace or add to the normal CPP pension. Pensioners who are eligible and who paid into the CPP while they were working will continue to get their regular CPP pension.
Payment Method: Every month, it will mostly be a direct payment. If someone chose to do business offline, checks would be sent out the last three days of every business month.