Employee eligible to receive CPP retirement pension

Important notice
Changes to the rules for deducting Canada Pension Plan (CPP) contributions.

When an employee starts receiving the Canada Pension Plan (CPP) retirement pension, you have to stop deducting CPP contributions.

Human Resources and Skills Development Canada will send an award letter to employees who will receive a pension. The letter indicates the date the pension becomes payable. The employee has to show you this letter to prove that contributions are no longer required.

An employee may work after the age of 60 and not apply for a CPP retirement pension. As a result, you have to deduct contributions until the end of whichever occurs first:

• the month before the employee receives the retirement pension; or
• the month in which the employee turns 70.

Note
The requirements are different for the Quebec Pension Plan (QPP). To get information, see Revenu Québec.