CPP Rule Change: Working and Contributing After 65

Starting in 2012, the government of Canada changed a number of CPP rules related to older workers. One rule change allowed people 65 and over to continue making contributions to CPP even if they were still working and collecting CPP. But, employees who wished not to continue with CPP contributions were expected to opt-out officially with the CRA, otherwise employers and employees are subject to an assessment for the premiums not paid. Prior to 2012, Canadians over the age of 65 were not permitted to contribute to CPP, even though they were working.

This rule change came as a surprise to many seniors and their employers at year’s end. As a result, the CRA has made it possible for employees who were not aware of the changes to opt-out retroactively for 2011 and 2012, by completing a CPT30 form. For 2013 and subsequent years, employees collecting CPP and working past 65 who do not want to continue contributing, will be expected to proactively opt-out using the CPT30 form.

In order to submit a CPT30 form dated December 2011, the individual would have had to be at least 65 years of age and would have had to have been in receipt of a CPP/QPP prior to December 2011. Otherwise, the earliest a CPT30 could be dated would be the month the senior satisfied the two conditions – that of being 65 years of age and also in receipt of a CPP/QPP retirement pension keeping in mind that the election takes effect the first of the following month.

Read more about the CPP changes in CARP ActionOnline

CPP changes from Service Canada

More information about Form CPT30