The Canada Pension Plan (CPP) Post-Retirement Benefit (PRB) is a lifetime monthly benefit for individuals who continue to work and contribute to the CPP while receiving their CPP retirement pension.
Introduced to provide additional income in retirement, the PRB allows retirees to increase their pension payments based on post-retirement contributions.
Eligibility Criteria for PRB
To qualify for the CPP Post-Retirement Benefit, you must:
- Be 60 to 70 years old.
- Be receiving a CPP retirement pension.
- Be employed or self-employed and making Canada Pension Plan contributions.
It’s important to note that Canada Pension Plan contributions are mandatory for working Canada Pension Plan retirement pension recipients under age 65. Between 65 and 70, contributions are optional, and individuals can choose to stop contributing by submitting the CPT30 form to the Canada Revenue Agency (CRA) and their employer.
After age 70, CPP contributions are no longer permitted, regardless of employment status.
Contribution Requirements Based on Age
| Age Range | Contribution Requirement | Action Needed |
|---|---|---|
| 60–64 | Mandatory | Automatic deductions |
| 65–70 | Optional | Submit CPT30 form to opt out |
| 70+ | Not permitted | No action required |
If you’re self-employed, you must pay both the employee and employer portions of the Canada Pension Plan contributions.
Calculating the PRB Amount
Each year you contribute to the Canada Pension Plan while receiving your retirement pension, you earn a new PRB, which is added to your existing CPP payments. The amount is calculated based on your earnings and contributions in that year.
In 2025, the maximum new PRB for someone aged 65 is $47.82 per month, reflecting maximum contributions. The average PRB is $9.87 per month.
These benefits are indexed annually to inflation, ensuring they maintain their purchasing power over time.
Advantages of Continuing CPP Contributions Post-Retirement
- Increased Retirement Income: Each additional PRB enhances your monthly pension.
- Lifetime Benefit: Once earned, PRBs are paid for life.
- Inflation Protection: PRBs are adjusted annually to reflect changes in the cost of living.
Continuing to contribute to the Canada Pension Plan while working post-retirement can be particularly beneficial for those whose current CPP retirement pension is significantly less than the maximum allowable benefit.
How to Stop CPP Contributions After 65
If you’re between 65 and 70 and wish to stop contributing to the Canada Pension Plan:
- Complete the CPT30 form.
- Provide a copy to your employer(s).
- Send the original form to the Canada Revenue Agency (CRA).
If you have multiple employers, you must give a copy of the form to each. You can resume contributions later, but only one change is allowed per calendar year.
The CPP Post-Retirement Benefit offers a valuable opportunity for retirees to enhance their income by continuing to work and contribute to the Canada Pension Plan.
Understanding the eligibility criteria, contribution requirements, and benefits can help you make informed decisions about your retirement planning.
Whether you choose to continue contributing or opt out after 65, the PRB ensures that your efforts in the workforce are rewarded with increased financial security in your retirement years.
FAQs
Can I receive the PRB if I start working after beginning my CPP retirement pension?
Yes, if you’re under 70 and start working while receiving your Canada Pension Plan retirement pension, you can contribute to the CPP and earn PRBs.
Do I need to apply separately for the PRB?
No, the PRB is automatically calculated by the federal government based on your Canada Pension Plan contributions after retirement.
How often are PRB payments made?
PRB payments are added to your CPP retirement pension and issued as a single monthly payment.