The Canada Pension Plan (CPP) is a social security program that provides retirement, disability, survivor, and children`s benefits to eligible Canadians. However, if you are a Canadian citizen who has lived and worked in another country, you may be wondering if your CPP contributions can be combined with contributions you`ve made to that country`s social security program. This is where Canada`s pension plan agreements with other countries come into play.
Canada has established social security agreements, also known as international social security agreements or totalization agreements, with many countries around the world. The purpose of these agreements is to enable eligible individuals to obtain benefits from both countries` social security programs, while also avoiding double social security taxation.
Under these agreements, CPP contributions made by Canadians who have worked in other countries may be combined with contributions made to that country`s social security program. The combined contributions are then used to determine eligibility for benefits from both social security programs. Eligibility for CPP benefits is determined based on the totalized contributions, and the amount of the benefit is based on the rules of the CPP.
Additionally, if you have lived and worked in a country that has a social security agreement with Canada, you may be entitled to receive benefits from that country`s social security program as well. The rules for eligibility and the amount of the benefit vary by country and are outlined in the specific agreement.
Some of the countries that have social security agreements with Canada include the United States, the United Kingdom, France, Germany, Australia, and many more. The full list of countries can be found on the Government of Canada`s website.
To take advantage of these agreements, you must apply for benefits in the country where you currently reside or intend to reside. If you are eligible for benefits from both countries, you will receive a combined benefit payment from both programs.
In conclusion, the Canada Pension Plan agreements with other countries offer a crucial benefit to Canadian citizens who have lived and worked abroad. By combining contributions made to social security programs in both Canada and other countries, eligible individuals can receive benefits from both programs while also avoiding double social security taxation. If you have worked in a country with which Canada has a social security agreement, it`s essential to understand the eligibility requirements and apply for benefits if you are eligible.