35 Government Administered Plans

Government administered programs relate to publicly funded plans that are administered by the government.  Eligible Canadians can obtain financial assistance from the government upon retirement.  These government administered plans include the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS).

Canada Pension Plan (CPP)

Relates to the primary government retirement pension that is issued monthly to qualifying individuals.  The funds issued through the CPP plan are taxable when they are received, and assist to replace part of your income upon retirement.

For trades workers, both the working individual and employer makes contributions to the Canada Pension Plan every year.  Both the individual taxpayer and the employer pay the same amount of CPP (5.95% in 2024) up to an annual limit.  Beginning in 2024, a second additional CPP contribution amount is paid on earnings above the annual maximum pensionable earnings (4% in 2024).  The amount that the individual pays is directly withheld from one’s pay cheque and remitted to CRA on their behalf.  If one has overpaid CPP, potentially due to more than one employer, then an individual can file an Individual Tax and Benefit Return (T1) to claim any qualifying refund.

Old Age Security (OAS)

Relates to a monthly payment pension from the Canadian government to eligible Canadians aged 65 and older.

Further details about Old Age Security can be found at the attached link.

Guaranteed Income Supplement (GIS)

• Relates to an additional taxable benefit on top of Old Age Security for eligible Canadians. An individual applies for GIS at the same time as one applies for Old Age Security pension.
• Criteria for GIS includes being age 65 or older, living in Canada, getting OAS pension, and income is below a certain maximum annual income threshold

Further details about Guaranteed Income Supplement can be found at the attached link.