# Child Rearing Provision, QPP



## georgeben (Nov 25, 2010)

Hello,
I want to apply for the Child Rearing Provision that is available under CPP. However, I cannot find any equivalent provision under the QPP. Do you know why this is? Should I just send in the CPP form? It would amount to a significant increase as I stayed home to raise 2 daughters, one born 1975 and the other born 1981.
Thank you for any information you can provide.


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## NorthernRaven (Aug 4, 2010)

It should be the same calculation for the QPP - the wording on their site about it has the same language regarding children under 7. However, I can't seem to find an equivalent form to CPP's for requesting the calculation be redone - you should probably contact QPP directly.

In what year did you retire? I recently helped my mom with this for CPP. For some silly reason they didn't ask the right questions and calculate this automatically back in the 80's and 90's, but at some point they started putting the questions about children on the CPP/QPP application form. If you've applied for QPP in the last few years, or your application asked about your children or eligibility for family benefits, your pension may already have the child-rearing provision calculated in. Definitely worth checking, though.


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## the-royal-mail (Dec 11, 2009)

All of this is new to me. I have started to read the links supplied by Raven, but I don't quite understand how/why someone who retires in 2010 is entitled to receive some money for a child that was born and raised 35 years earlier. First I've heard of it.


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## NorthernRaven (Aug 4, 2010)

It is just a part of of the regular calculation of someone's CPP pension, which (MoneyGal will hopefully forgive my sloppy wording) is based on what percentage of the maximum yearly contribution you actually made in the years you were working. High-earners max out each year, and can get the maximum CPP (around $935/month these days). Lower earners, or people not working for some the years between 18-65, have some years at less than the maximum and are eligible for somewhat less.

Everyone gets to throw out the worst 15% of your contribution years (student days, or the period you spend flipping burgers at McDonald's, or whatever). The child-rearing provision allows eligible primary caregiver parents to also throw the years they spent at home with children under 7. This tends to eliminate a lot of zero or small contribution years for them, and their CPP works out higher.

I thought the original poster might already have retired, but if not or if it was recently, this calculation may already have been done. But for people who retired back in the 80's and 90's, it wasn't always (you apparently needed a separate form back then).


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## Ben (Apr 3, 2009)

the-royal-mail said:


> All of this is new to me. I have started to read the links supplied by Raven, but I don't quite understand how/why someone who retires in 2010 is entitled to receive some money for a child that was born and raised 35 years earlier. First I've heard of it.


I'm currently helping my mom apply for CPP at age 60. She has 20.3 years to drop out for raising kids, plus 6.3 years (15%) for additional low earning years. Total contributory period = 15.4 years. At least, this is how I read it. We'll see if CPP folk see it the same way. Maybe there is a max on allowable years to drop out?

http://www.servicecanada.gc.ca/eng/isp/pub/overview/refguide10.shtml

Drop-out provisions
Months of low or zero earnings while caring for dependent children under the age of seven may also be excluded from the contributory period. This provision ensures that reduced earnings during child-rearing years will not result in lower CPP benefits. It applies to the person who received a Family Allowance benefit or was the spouse of a Family Allowance recipient. It also applies to those who are eligible for the Child Tax Benefit.

Certain periods of low or zero earnings - up to 15 percent of an individual′s contributory period - may be excluded when calculating average monthly pensionable earnings. This "drop-out" period is intended to compensate for periods of unemployment, illness, schooling, and so on. This is calculated after the child rearing provision has been applied.


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## NorthernRaven (Aug 4, 2010)

@Ben - it would make a difference which order they do this. Dropping 15% of the 42-year period, and then the child years produces your answer, but dropping the child years and then 15% of the remainder would come out around 18.4 years.

I was wandering around the CPP stuff this fall trying to work out the calculations (that's how I found the child-rearing thing and got some money for my mom), but I can't remember if or where there is anything on the sequence this is done.

In any case, if your mom had a child under 7 around during 20 years, she's more than earned her credit...


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## Ben (Apr 3, 2009)

NorthernRaven said:


> @Ben - it would make a difference which order they do this. Dropping 15% of the 42-year period, and then the child years produces your answer, but dropping the child years and then 15% of the remainder would come out around 18.4 years.


I think you're probably right. Drat!


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## NorthernRaven (Aug 4, 2010)

Note that if I ever saw anything that might indicate which order they do it, I've forgotten by now, so either way is possible. However, just on a guess, it would make sense that the child-rearing years "don't exist" and would be dropped first, than the 15% rule applied as per anyone else. 20 years of CRP dropping will make a big difference, in any case.

[Later]: Sorry, I found this on their site, and the sequence works against you (child-rearing drop, then 15%): "_Certain periods of low or zero earnings - up to 15 percent of an individual′s contributory period - may be excluded when calculating average monthly pensionable earnings. This "drop-out" period is intended to compensate for periods of unemployment, illness, schooling, and so on. *This is calculated after the child rearing provision has been applied.*_"


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## georgeben (Nov 25, 2010)

Thanks NorthernRaven and Ben,
I am just in the process of applying for QPP and OAS and I was concerned that I wouldn't be allowed to claim for the Child Rearing Provision here in Quebec. I will definitely contact QPP but as you say it may already be factored in. I just wish QPP had a form similar to the one in CPP. I would feel more secure knowing they got my information right!


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