When do i get canada pension

Before the agreement, employees, employers and self-employed persons could, under certain circumstances, be required to pay Social Security taxes to both the United States and Canada for the same work. Under the agreement, if you work as an employee in the United States, you normally will be covered by the United States, and you and your employer will pay Social Security taxes only to the United States.

If you work as an employee in Canada, you normally will be covered by Canada, and you and your employer will pay Social Security taxes contributions only to Canada. On the other hand, if your employer sends you from one country to work for that employer or an affiliate in the other country for five years or less, you will continue to be covered by your home country and you will be exempt from coverage in the other country.

For example, if a U. Social Security taxes and will not have to pay in Canada. Even if your occupation such as truck driver or professional athlete requires you to make frequent short trips from one country to the other over a period of more than five years, each trip can be considered separately so that you remain covered only by the country from which you are sent.

If you are self-employed and residing in the United States or Canada, you generally will be covered and taxed only by the country where you reside.

The following table shows whether your work is covered under the U. If you are covered under U. Social Security, you and your employer if you are an employee must pay U. Social Security taxes. If you are covered under the Canadian system, you and your employer if you are an employee must pay Canadian Social Security taxes contributions. Write to the U. Write to the appropriate Canadian address in " Certificates for employees " section for further information.

Social Security only if he or she works for a U. The term also includes a foreign affiliate of a U. A certificate of coverage issued by one country serves as proof of exemption from Social Security taxes on the same earnings in the other country. Generally, you will need a certificate only if you will be working in the other country for more than days in a calendar year. If you will be in the other country for days or less, a certificate will not be needed unless the other country requests that you obtain one.

The request may be sent by FAX, if preferred, to Please note this FAX number is only for requesting certificates of coverage. No special form is required to request a certificate but the request must be in writing and provide the following information:.

In addition, your employer must indicate if you remain an employee of the U. If you become an employee of an affiliate, your employer must indicate if the U. Social Security taxes for U. Your employer can also request a certificate of U.

To establish your exemption from coverage under the U. Social Security system, your employer in Canada must request a certificate of coverage from Canada as follows:. The same information required for a certificate of coverage from the United States is needed to get a certificate of coverage from Canada or Quebec except that you must show your Canadian social insurance number rather than your U. Social Security number. If you are self-employed and would normally have to pay Social Security taxes to both the U.

The certificate of coverage you receive from one country will show the effective date of your exemption from paying Social Security taxes in the other country. Generally, this will be the date you began working in the other country.

However, a self-employed person must attach a photocopy of the certificate to his or her income tax return each year as proof of the U. Copies of certificates of coverage issued by the United States will be provided for both the employee and employer.

It will be their responsibility to present the certificate to the Canadian or Quebec authorities when requested to do so. To avoid any difficulties, your employer or you, if you are self-employed should request a certificate as early as possible, preferably before your work in the other country begins. If you or your employer request a certificate of coverage, you should read the Privacy Act and Paperwork Reduction Act Statements below. Authority to collect information for a certificate of coverage.

The Privacy Act requires us to notify you that we are authorized to collect this information by section of the Social Security Act. While it is not mandatory for you to furnish the information to the Social Security Administration, a certificate of coverage cannot be issued unless a request has been received. The information is needed to enable Social Security to determine if work should be covered only under the U.

Social Security system in accordance with an international agreement. Without the certificate, work may be subject to taxation under both the U. This information collection meets the clearance requirements of 44 U. You are not required to answer these questions unless we display a valid Office of Management and Budget OMB control number. We estimate that it will take you about 30 minutes to read the instructions, gather the necessary facts, and write down the information to request a certificate of coverage.

The following table shows the various types of Social Security benefits payable under the U. If you do not meet the requirements for these benefits, the agreement may help you to qualify see " How benefits can be paid " section.

We should point out that Canada provides old-age, survivors and disability benefits through two different programs. This table is only a general guide. You can get more specific information about U.

Social Security office. Under U. Social Security, you may earn up to four credits each year depending on the amount of your covered earnings. Under the Canadian system, credits are measured in years. To simplify the information in the table, U. This benefit is payable outside Canada for only 6 months following the month of departure from Canada unless the person has at least 20 years of Canadian residence after age No work credits are required.

GIS is payable outside Canada for only 6 months following the month of departure from Canada. CPP- Worker can get full pension at age 65 or reduced pension as early as age Only one contribution 1 year coverage required.

OAS- No provision. CPP- Same as children of disabled worker. QPP- Same as children of disabled worker. CPP- Same minimum contributory requirements as for other survivor benefits.

QPP- Same minimum contributory requirements as for other survivor benefits. If you have Social Security credits in both the United States and Canada, you may be eligible for benefits from one or both countries. Together, you can look for ways to spread out your income and avoid being in a clawback position.

Then your CPP benefit will be 8. Then you also get more time to add to your retirement savings. Playing the waiting game clearly pays off, but can it work for you? A lot of the decision depends on your health and your other sources of retirement income. Before you dip into your government benefits, Coutts recommends asking yourself three questions:. That way, you can understand all your options. This article is meant to only provide general information.

Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation. I understand I can unsubscribe at any time and acknowledge that this email address belongs to me. Learn more about privacy and how we collect data to provide you with more relevant content. Budget calculator. Financial check-up. Life insurance calculator.

Net worth calculator. Make well-informed decisions with helpful advice. Talk to your advisor or find one near you - there is no cost to talk to an advisor. Find an advisor. How advisors help. We are grateful to have the opportunity to work in this territory.

We offer this acknowledgment as a stepping stone towards honouring the original occupants, as a testimony to the oppression faced by Indigenous peoples, and our commitment to Indigenous communities and employees of Sun Life. Learn more about privacy and how we collect data to give you relevant content. Share this: Share this on Facebook. Share this on Twitter. These include benefits for disabled contributors and their dependent children. Death and survivors benefits.

Retirement benefits. You can apply for and receive a QPP pension at age 60, but the amount will be lower than if you wait until you are You may also qualify for a retirement pension supplement.

These are designed for people who have contributed to the plan, have a severe or permanent disability and are under the age of