# CPP maximums for 2019



## Dogger1953 (Dec 14, 2012)

Revenue Canada recently announced that the YMPE for 2019 is $57,400. This means that the 5-year average YMPE ending with 2019 is $55,420, and using the old rules this would mean that the maximum age-65 CPP retirement pension for 2019 would be $1,154.58. With the enhanced CPP changes though, this maximum amount really applies only to retirement pension beginning in January 2019, Any retirement pension starting after January 2019 and where that person has 2019 earnings could exceed that maximum amount, with the actual age-65 maximum retirement pension effective December 2019 could be as high as $1,155.90 (a whopping increase of $1.32).
Why so little impact? It's because 2019 is the first year of a 5-year transition period whereby both the contribution rate and the benefit increase are just 15% of the eventual first portion of the increase. By 2023, the maximum benefit increase will be approx. $9.60 per month for each year of additional earnings at the YMPE level, and then the second portion of the increase begins in 2024. By 2025, the maximum increase for a pension that starts in December versus January will be approx. $15.00, compared to the $1.32 difference for this coming year.


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## Beaver101 (Nov 14, 2011)

^ Thank you for the updates. 

If I'm understanding correctly from your first paragraph, what you're saying is that the maximum CPP benefit payable (at age 65 of course) is $1,155.90 and only effective Dec. 2019 because of the "enhanced" rules taking into effect. 

But if the person who elected to take their pension in January 2019 (because he/she happened to hit age 65), he/she will only get $1,154.98 because the old rules still apply due to the old contribution amounts? 

Then based on your 2nd paragraph, the implementation of the "enhanced" changes as far as benefits payments are concerned only take full effect after 6 years or starting January 2025? Does this "enhanced benefits" change require "enhanced contributions" amounts? What happens if the person ceases contributions prior to 2019 (due to job termination and/or taking early retirement) and is not yet 65 (or even 60 for the reduced version), does the "enhanced" version or the "old rules" version apply?


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## Dogger1953 (Dec 14, 2012)

Beaver101 said:


> ^ Thank you for the updates.
> 
> If I'm understanding correctly from your first paragraph, what you're saying is that the maximum CPP benefit payable (at age 65 of course) is $1,155.90 and only effective Dec. 2019 because of the "enhanced" rules taking into effect.
> 
> ...


Hi Beaver - You're correct on your first two points, except that the January 2019 maximum amount is only $1,154.58 (not .98). The enhanced benefits don't actually take full effect until 40 years after 2025, but someone can benefit from the full annual increase of $15.00 starting with 2025. If a person doesn't contribute in 2019 or later years, they will only ever be paid under the old rules and won't benefit at all from the enhanced increases.


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## naysmitj (Sep 16, 2014)

Good morning, just trying to understand the impact of these changes.
I am 68, working full time, collecting maximum CPP and paying the maximum into CPP as an employee for the PRB.
Not planning on retiring any time soon.
Is there an impact on my situation, either good or bad, as a result of these changes?


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## Dogger1953 (Dec 14, 2012)

naysmitj said:


> Good morning, just trying to understand the impact of these changes.
> I am 68, working full time, collecting maximum CPP and paying the maximum into CPP as an employee for the PRB.
> Not planning on retiring any time soon.
> Is there an impact on my situation, either good or bad, as a result of these changes?


Your PRB effective January 2020 (for your 2019 earnings) will be about $1.60 more than it would have been prior to the changes, with a slightly bigger increase for your 2020 earnings if you're still under age 70 for most of that year.


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