Federal and provincial governments have agreed to several important amendments to the Canada Pension Plan (CPP).
Key changes include:
- Increased Death Benefit: The death benefit will double to $5,000 for contributors who have no survivors and have never collected CPP payments. The standard $2,500 death benefit will continue for other eligible contributors.
- Partial Child Benefit for Part-Time Students: A new partial child benefit will be introduced for part-time students under 25 who are attending a recognized post-secondary institution. Previously, the CPP surviving child benefit was only available to children under 18 or full-time students under 25.
- Extended Eligibility for Disabled Contributors’ Children: The eligibility for the disabled contributor’s children’s benefit will now extend to children up to age 18 or 25 if they are attending a recognized post-secondary institution, regardless of the disabled parent's age. Currently, this benefit ends when the disabled parent turns 65.
- End of Survivor Pensions for Separated Couples: Couples who are legally separated will no longer be eligible for survivor pensions, even if they are still legally married or in a common-law relationship.
These changes are not expected to affect contribution rates. The 2024 budget did not provide estimates for the financial impact of these amendments.
