As of 2019, the Canada Pension Plan (CPP) is being gradually enhanced. This means you will receive higher benefits in exchange for making higher contributions. The CPP enhancement will only affect you if, as of 2019, you work and make contributions to the CPP. As a result Employers will almost certainly need to re-think their retirement policies in response to Canada Pension Plan (CPP) expenses that have begun to go up beginning January 2019.The enhancement increases the CPP retirement pension, post-retirement benefit, disability pension and survivor’s pension eligible individuals may receive.Under the enhanced CPP authorized by Ottawa and the provinces, expenses go up in two ways: One way involves a series of higher contribution rates from 2019 to 2023 and the other will involve a higher ceiling on how much annual income is subject to contributions in 2024 and 2025.By 2023, the employer's contribution rate will be 5.95 per cent of an employee's pensionable earnings, up from 4.95 per cent in 2018 and prior years. In 2024 and 2025, the ceiling on maximum pensionable earnings will be raised.In case you have questions from your employees about the new CPP deductions and contributions, you can get more details at the Govt. Of Canada's CPP Enhancement webpage here. For more information about eligibility for CPP benefits, employees can visit the following web pages:

• CPP retirement pension (Provides a monthly benefit to eligible applicants. You can apply/receive a full CPP retirement pension at age 65 or receive it as early as age 60 with a reduction, or as late as age 70 with an increase)
• CPP post-retirement benefit (If you continue to work while receiving your CPP retirement pension, and are under age 70)
• CPP disability benefits (If you have a severe and prolonged disability, are under the age of 65 & meet the CPP contribution requirements)
• CPP survivor's pension (This is paid to the person who, at the time of death, is the legal spouse or common-law partner of the deceased contributor)

If you’re a Beneplan client, please call or email us to get help with these or any other organizational HR issue that you may face. Also, don’t forget the HR Toolkit section of your client login, for HR document resources that you can avail of.If you’re not yet a Beneplan client, check out our value proposition and let us help you build a better group benefits plan for your organization. Ask about our free, no obligations quote.