Discussions

I find this confusing.  
An extra buck or 2 off each cheque would hardly be missed & add an awful lot to YOUR CPP account which would help tremendously then you retire. Changing this amount on your payslip is all that is involved. It really has nothing to do with the employers costs at all. What's the problem ? ?  
I find Mr.PALISTER stance on the matter very confusing.

Employers are required to match Employee CPP deductions, dollar for dollar. So it is a greater cost to Employers. $2 per Employee with 100 Employees is $200/cheque, which could be $5,200 per year. That cost is then passed on to the Consumer, so the price of goods goes up. Customers are taking home less money AND now they have to pay higher prices at the store. It affects in more ways than one.  
 
What I'd like to see (I haven't done enough research on this so I don't know what the plan is) is to increase the amount contributed per year. Right now I max out partway through the year and I could easily continue contributing to a higher maximum.  
 
Maybe this plan WILL help us when we retire, too bad it will be a long time until we know whether it helped or not. People should be responsible for their own welfare and through education young people will learn the importance of saving for retirement. The government shouldn't force anyone to put money away.

I'd rather keep my money and invest in my own RRSP. If I had the choice I'd put no money into CPP and put it all in my RRSP...I'd have a heck of a lot more growth out of it by the time I retire...

thatsjustme said "I'd rather keep my money and invest in my own RRSP. If I had the choice I'd put no money into CPP and put it all in my RRSP...I'd have a heck of a lot more growth out of it by the time I retire... "

but then you wouldn't have your employer contributions put into your CPP either. have you contacted CRA to see how much is in your account do you know your growth rate?

jay8484 said "    thatsjustme said "I'd rather keep my money and invest in my own RRSP. If I had the choice I'd put no money into CPP and put it all in my RRSP...I'd have a heck of a lot more growth out of it by the time I retire... " but then you wouldn't have your employer contributions put into your CPP either. have you contacted CRA to see how much is in your account do you know your growth rate? "

But....I just watched an explanation about CPP. Since age 18 what you work is put into CPP plan. You are entitled to a max amount. Well last I checked with an RRSP there is no cap on my amount I want to take out. Just means more money taxed on. If my contribution keeps going up yet the amount returned gets maxed out at a certain level....well that makes no sense to me. Hmmmm....give the government money only to be told how much you can have back. That isn't my cup of tea. Please correct me if I am wrong.

i think you have it confused with how much you are ALLOWED to contribute. i don't think it maxes out. in fact, if you delay taking the pension until age 70, your monthly benefit increases.

jay8484 said "i think you have it confused with how much you are ALLOWED to contribute. i don't think it maxes out. in fact, if you delay taking the pension until age 70, your monthly benefit increases. "

According to the government website the max monthly payment will be just under $1100 a month. I want more than $1100 a month hence why I contribute to my own work pension and personal RRSP fund. Do I really trust the government to take care of me when I retire.....no thanks I see what they do with our money already.  
 
http://www.esdc.gc.ca/en/cpp/benefit_amount.page

CPP is just a waste of my money and my employers money. I would much rather have my employer give me the amount that they pay in CPP contributions and I could invest their share and my share myself without having to worry about not living long enough to even collect. If you die before the age of seventy the government doesn't even have to pay anything to your estate unless they file some forms and then they will only pay your estate 12 months worth of CPP not very bloody much for a lifetime of saving. This info is straight off the Canada Pension Website  
 
"If you die before applying for your CPP retirement pension, we cannot pay your retirement pension to anyone else unless you were over 70 when you died and your estate submits a CPP retirement pension application no later than one year after your death. In this case, we can pay up to 12 months of retirement pension to your estate."  
At least if I had invested all that money into anything my estate would get it.  
 
Would be interesting to see how much money the government never has to pay because someone dies before the age of 70.

Employer matches donations ? ?  
Mine didnt.

SDJ said "CPP is just a waste of my money and my employers money. I would much rather have my employer give me the amount that they pay in CPP contributions and I could invest their share and my share myself without having to worry about not living long enough to even collect. If you die before the age of seventy the government doesn't even have to pay anything to your estate unless they file some forms and then they will only pay your estate 12 months worth of CPP not very bloody much for a lifetime of saving. This info is straight off the Canada Pension Website     "If you die before applying for your CPP retirement pension, we cannot pay your retirement pension to anyone else unless you were over 70 when you died and your estate submits a CPP retirement pension application no later than one year after your death. In this case, we can pay up to 12 months of retirement pension to your estate."   At least if I had invested all that money into anything my estate would get it.     Would be interesting to see how much money the government never has to pay because someone dies before the age of 70. "

Actually, I know someone whose spouse died and they are receiving a survivors benefit through CPP, they are receiving the money their spouse would have been paid had they lived to retirement. There is also an amount for kids under 18 (25 if they're in school). It's based on how long the deceased had paid into CPP.

Yes, your employer does. They face serious penalties if they don't.

who-am-i? said "    SDJ said "CPP is just a waste of my money and my employers money. I would much rather have my employer give me the amount that they pay in CPP contributions and I could invest their share and my share myself without having to worry about not living long enough to even collect. If you die before the age of seventy the government doesn't even have to pay anything to your estate unless they file some forms and then they will only pay your estate 12 months worth of CPP not very bloody much for a lifetime of saving. This info is straight off the Canada Pension Website     "If you die before applying for your CPP retirement pension, we cannot pay your retirement pension to anyone else unless you were over 70 when you died and your estate submits a CPP retirement pension application no later than one year after your death. In this case, we can pay up to 12 months of retirement pension to your estate."   At least if I had invested all that money into anything my estate would get it.     Would be interesting to see how much money the government never has to pay because someone dies before the age of 70. " Actually, I know someone whose spouse died and they are receiving a survivors benefit through CPP, they are receiving the money their spouse would have been paid had they lived to retirement. There is also an amount for kids under 18 (25 if they're in school). It's based on how long the deceased had paid into CPP. "

the survivors benefit is reduced

braid said "I find this confusing.   An extra buck or 2 off each cheque would hardly be missed & add an awful lot to YOUR CPP account which would help tremendously then you retire. Changing this amount on your payslip is all that is involved. It really has nothing to do with the employers costs at all. What's the problem ? ?   I find Mr.PALISTER stance on the matter very confusing. "

max contribution employee 2500(rounded down)employer 2500= $5000 total per year,so age 25 you pay till you are 65,40 years, $200,000. max pay out $1100 per month,$200,000/1100= 181 months/12= 15 years so at age 80 you would start to receive some interest money not that good of a return,if it was managed as a pension there would be no need to increase contributions.I think the monthly payout could be increased. feel free check my math please

A surviving spouse age 65 or older only gets 60% of the deceased pension only if they are not getting their own ccp pension, 45-64 get a flat rate portion plus 37.5 per cent of the contributor's retirement pension, if the surviving spouse or common-law partner is not receiving other CPP benefits. What ever the amount is it is still robbery. You wouldn't let your financial institution keep a portion of your spouses RRSP if they die just because you took it out there.

what does the mb. gov. have to do with cpp? Nothing, it's a federal gov. plan. As in the name canada pension plan.

The gap between the private sector and the public sector is almost incomprehensible.  
 
The information in this story applies to all levels of government.  
 
It's time for politicians at all levels to come clean and communicate this issue to the taxpayers.  
 
The path we are on is unsustainable.  
http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com/fp-comment/philip-cross-the-dirty-secret-of-a-bigger-cpp-is-that-its-to-help-bail-out-public-sector-pension-plan

This link works, http://business.financialpost.com/fp-comment/philip-cross-the-dirty-secret-of-a-bigger-cpp-is-that-its-to-help-bail-out-public-sector-pension-plans  
 
Totally agree with this article. The federal government needs to get their act together on this.

braid said "Employer matches donations ? ?   Mine didnt. "

When your employer gives you a T4 slip, they must remit a copy to CRA with source deduction monthly remittance info. They can't hide that from revenue Canada. If you are self employed, you must remit your own CPP plus the amount an employer would have submitted on your behalf. If you do not receive t4 slips from your employer it likely is considered contract work and you are then required to report your income. That would then be considered self employed earnings and again you must remit the amount required based on your income plus the amount an employer would have submitted on your behalf if you had an employer. Hope that wasn't confusing.

braid said "I find this confusing.   An extra buck or 2 off each cheque would hardly be missed & add an awful lot to YOUR CPP account which would help tremendously then you retire. Changing this amount on your payslip is all that is involved. It really has nothing to do with the employers costs at all. What's the problem ? ?   I find Mr.PALISTER stance on the matter very confusing. "

I am finding several issues/actions that Pallister is implementing "confusing". Remember in his winning speech, he said that his first focus will be for helping the most Vulnerable people in this Province - apply increases in Pension payments for the elderly - refocus more services to the Vulnerable in our Society. . . .  
 
Clearly he is making changes alright to the Social Programs for this Province, but how is this a positive move??? Clearly he is showing us early in his reign, that he is a deep LIAR - and does in fact support more Homelessness to be occuring now in our Province.  
 
Pallister has totally misguided us in his Election "Promises" - and I wonder why the hell so many of you believed in his word????

Get a life whatthewhat. The ndp had 17 years to shape this prov. and all we got was more prov. debt. and poorer services. Pallister has been in about 3 months and already your complaining? Unbelievable.

stonepicker said "Get a life whatthewhat. The ndp had 17 years to shape this prov. and all we got was more prov. debt. and poorer services. Pallister has been in about 3 months and already your complaining? Unbelievable. "

How very intellectual of you to notice. I thank you for that. See, I am actually a Critic and an Advocate for the People. But thanks for taking time out of your busy day to smack me on top of the keyboard - lol - hope it makes your day my friend.  
 
Thanks for reading me though!