What is the CPP’s Child-Rearing Provision?

January 1, 2018

 

 

 

 

 

 

 

 

The basics of applying for CPP

Your CPP retirement pension does not start automatically. You must apply for it. Before you apply, you must:

  • be at least a month past your 59th birthday;
  • have worked in Canada and made at least one valid contribution to the CPP; and
  • want your CPP retirement pension payments to begin within 12 months.

What is the CPP’s Child-Rearing Provision?

If you stopped working or received lower earnings to raise your children, you may be able to use the “child-rearing provision” to increase your CPP benefits.

Caring for young children can mean leaving the workforce or working fewer hours. If your earnings stopped or were lower because you were the primary caregiver raising your children under the age of seven, you can request the child-rearing provision.

If you are deemed eligible, the child-rearing period will be excluded from the contributory period when calculating your CPP benefit amount, ensuring that you get the highest possible payment.

Primary caregiver For the CPP, the primary caregiver is the person who was most responsible for the day-to-day needs of the children for the specified periods.

Am I eligible? The child-rearing provision may apply to you if:

  • you have children born after December 31, 1958;
  • your earnings were lower because you either stopped working, worked fewer hours or took a lesser paying job to be the primary caregiver of a dependent child under the age of seven; and
  • you or your spouse or common-law partner received Family Allowance payments or were eligible for the Canada Child Tax Benefit (even if you did not receive the benefit).

Either spouse or common-law partner can request the child-rearing provision, but it cannot be used by both parents for the same period of child-rearing.

Why should I request the child-rearing provision?

You should request the child-rearing provision because it may increase the amount of your CPP benefit.

The child-rearing provision could also help you meet the eligibility requirements for a CPP Disability Benefit, should you need it. In the event of your death, it could help you meet the contributory requirements to provide benefits to your estate and survivors.

 How do I request the child-rearing provision?

You should request the child-rearing provision when you apply for any CPP benefit.

If you are already receiving a CPP benefit, you can still request this provision. Complete the child-rearing provision form (ISP1640), and mail it to Service Canada as indicated on the form.

What documents do I need to provide?

You must provide one of the following for each child:

  • the child’s name, date of birth, and Social Insurance Number; or
  • the child’s birth certificate (the original or a certified true copy)

You may also be required to provide proof of the date of entry into Canada for children born outside Canada.

Source: CRA, Canada.ca

 

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