# How the CPP credit split (DUPE) often creates a net loss of benefits



## Dogger1953 (Dec 14, 2012)

I've written about this issue on this forum before, so don't read any further if you find this repetitive!

If you haven't heard about this issue though, or if you want a better explanation, check out this article that I've written: http://retirehappy.ca/crdo/


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## ShowMeTheMoney (Apr 12, 2009)

Just doing the credit split myself, and I had a kid so I've been playing with the numbers. Your blog on how to calculate your cpp is very helpful, thank you. You say "if you are eligible for the CRP, you can drop out any period of time that your children were under the age of 7 and where your APE was less than your average APE." I understand by that you mean the average APE before dropping any years. I think the credit split will bring up that average APE for the member that applies for it (why else would you do it), but then it is likely to reduce the number of drop-able years. Does for me. Also, if both members of the "couple", don't have many low income years after the divorce, and beside the child rearing years before, then those child rearing years will probably be dropped for both members. So I can see how it could be a problem in some scenarios, but it may not be as big as you fear.


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## Dogger1953 (Dec 14, 2012)

ShowMeTheMoney said:


> Just doing the credit split myself, and I had a kid so I've been playing with the numbers. Your blog on how to calculate your cpp is very helpful, thank you. You say "if you are eligible for the CRP, you can drop out any period of time that your children were under the age of 7 and where your APE was less than your average APE." I understand by that you mean the average APE before dropping any years. I think the credit split will bring up that average APE for the member that applies for it (why else would you do it), but then it is likely to reduce the number of drop-able years. Does for me. Also, if both members of the "couple", don't have many low income years after the divorce, and beside the child rearing years before, then those child rearing years will probably be dropped for both members. So I can see how it could be a problem in some scenarios, but it may not be as big as you fear.


SMTM - Glad that you found my article on how to calculate a CPP pension useful. You're right that the APE to compare to when applying the CRP is the before dropout APE. I actually wrote a separate article on the CRP (actually a 3-part series) that you could find at: http://retirehappy.ca/child-rearing-dropout/ if you want to learn more.

You're also right that the male parent can mitigate some of this "loss" by judicious use of his general (soon to be 17%) dropout, but that might mean working right until age 65 (or beyond). This isn't a solution to the unfair situation, at least not in my mind.

And I further agree that it's not always a large amount of difference, but explain that to the poor sap who loses $150 per month more than his ex-spouse gains, which I've seen happen.


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## ShowMeTheMoney (Apr 12, 2009)

Dogger1953 said:


> And I further agree that it's not always a large amount of difference, but explain that to the poor sap who loses $150 per month more than his ex-spouse gains, which I've seen happen.


Yes thanks again for those articles, very helpful. I don't feel sorry for the poor sap though. Chalk it up to the cost of divorcing the wife who took a hit in her career to raise his kids.


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## Dogger1953 (Dec 14, 2012)

ShowMeTheMoney said:


> Yes thanks again for those articles, very helpful. I don't feel sorry for the poor sap though. Chalk it up to the cost of divorcing the wife who took a hit in her career to raise his kids.


You probably meant their kids, but I'll concede that there are two sides to every story.


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## ShowMeTheMoney (Apr 12, 2009)

Dogger1953 said:


> You probably meant their kids, but I'll concede that there are two sides to every story.


Yes, their kids.


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