Pension and benefits statistics 2018 - Morneau Shepell

Knowledge & Insights

Pension and benefits statistics 2018 Pension statistics Canada/Quebec Pension Plan Retirement pension (maximum starting at 65) Death benefit (maximum) Survivor pension (maximum, age 65 and over) Survivor pension (maximum under age 65) Orphan benefit (per child) Year's Maximum Pensionable Earnings (YMPE) Maximum employee contribution to CPP/QPP

2018

2017

$1,134.17

$1,114.17

$2,500.00

$2,500.00

$680.50

$668.50

$614.62/$910.48

$604.32/$895.81

$244.64

$241.02

$55,900.00

$55,300.00

$2,593.80/$2,829.60

$2,564.10/$2,797.20

Payable monthly. Reduced for early retirement between 60 and 65. Lump sum. Payable monthly. Monthly amounts payable under CPP/QPP. See note 1.

See note 2. OAS, GIS and Allowance are indexed quarterly to CPI.

Old Age Security OAS (maximum at Jan. 1)

Comments

$586.66

$578.53

Payable monthly from 65. Subject to residency test.

Lower threshold for OAS clawback

$74,788.00

$73,756.00

Income at which OAS clawback begins. See note 3.

Upper threshold for OAS clawback

$121,314.00

$119,615.00

Income at which OAS is completely clawed back.

$876.23

$864.09

GIS and Allowance (maximum) GIS for single person

Payable monthly. Subject to income test. Benefits are paid tax-free.

GIS for pensioner with spouse also receiving OAS

$527.48

$520.17

Allowance

$1,114.14

$1,098.70

$1,328.08

$1,309.67

Maximum contribution to an RRSP

$26,230.00

$26,010.00

Maximum contribution to a TFSA

$5,500.00

$5,500.00

See note 6.

Maximum contribution to a DC RPP

$26,500.00

$26,230.00

Combined employee/employer contribution limit.

Maximum employee contribution to a DB RPP

$19,130.00

$18,941.00

Applies to required contributions; further limited to 9% of pay.

Maximum annual DB pension in an RPP

$2,944.44

$2,914.44

Limit for each year of pensionable service.

Allowance for survivor

See note 4.

Income Tax Act limits

Limited further to 18% of earned income in the previous year. See note 5.

Average (geometric) Economic and capital markets

2017

2016

5-Year

10-Year

Change in CPI for Canada (Oct. to Oct.)

1.39%

1.49%

1.4%

1.6%

Not seasonally adjusted.

Change in average earnings (Sept. to Sept.)

3.11%

0.12%

1.7%

2.2%

CANSIM Series V1558664.

3-month T-Bill rate (Dec.)

1.05%

0.48%

N/A

N/A


Yield on long-term Canada bonds (Dec.)

2.20%

2.34%

N/A

N/A


Prescribed interest on DB contributions

1.05%

1.15%

1.3%

1.5%

CANSIM Series V122515; see note 7.

2.6%/3.4%

2.2%/3.5%

N/A

N/A

First 10 years/thereafter; see note 8.

Discount rate for CIA transfer values (Dec.)

Comments

Benefit statistics As of January 1, 2018

As of January 1, 2017

55%

55%

$51,700.00

$51,300.00

Comments

Employment Insurance Benefit Formula (as a % of insurable earnings) Maximum Insurable Earnings (annual) Maximum Benefit (weekly)

$547.00

$543.00

Canada/Quebec

Canada/Quebec

• rate as a % of insurable earnings

1.66%/1.30%

1.63%/1.27%

• maximum annual dollar amount

$858.22/$672.10

$836.19/$651.51

Employee Premium

Employer Premium

Lower-income families may qualify for additional benefit.

See note 9.

See notes 9.

• rate as a % of insurable earnings • without registered WLRP

2.32%/1.82%

2.28%/1.78%

WLRP: Wage Loss Replacement Plan

• with registered WLRP

1.97%/1.47%

1.93%/1.43%

See note 10.

• without registered WLRP

$1,201.51/$940.94

$1,170.67/$912.11

• with registered WLRP

$1,018.71/$758.13

$991.12/$732.56


Disability Benefits Formula for Benefit amount (monthly) Maximum Benefit (monthly) Child Benefit (monthly amount per child)

CPP/QPP

CPP/QPP

$485.20/$485.17

$478.03/$478.00

$1,335.83/$1,335.80

$1,313.66/$1,313.63

$244.64/$77.67

$241.02/$76.52

$74,000.00

$72,500.00

Plus 75% of employee’s retirement pension. Payable over and above the Maximum Benefit amount shown. See note 12.

Quebec Parental Insurance Plan Maximum Insurable Earnings (annual)

See note 11.

Employee Premium • rate as a % of insurable earnings

0,548%

0.548%


$405.52

$397.30

Self-Employed Premium • rate as a % of insurable earnings

0,973%

0.973%


$720.02

$705.43

• rate as a % of insurable earnings

0,767%

0.767%


$567.58

$556.08

Employer Premium

1. The maximum survivor pension shown for QPP is valid for spouses aged 45 to 64. The QPP survivor pension for spouses under age 45 depends on whether the spouse is disabled or has dependent children. 2. In 2017, the QPP contribution rate increased to 10.8% while the CPP contribution rate remained at 9.9%. Contributions are calculated on earnings between $3,500 and the YMPE. 3. 2018 clawback refers to the July 2018-June 2019 period and is based on 2017 calendar year income. 4. “RPP” means Registered Pension Plan. “DB” means defined benefit. “DC” means defined contribution. “TFSA” means Tax-Free Savings Account. All amounts indicated in this section are annual. 5. Any carry-forward from previous years will be added to an individual’s RRSP contribution room as will any Pension Adjustment Reversals. Any Pension Adjustment declared for the prior year and any Past Service Pension Adjustments will decrease the amount. 6. Any carry-forward from previous years will be added to an individual’s TFSA contribution room. 7. Interest on required member contributions to ON, NS, NB, BC and federal DB plans. Rounded down to nearest 0.1% in SK, MB and AB. 8. Rates shown reflect 2009 CIA standard for pension commuted values. 9. Quebec rates are lower, but additional premiums are required for the Quebec Parental Insurance Plan (QPIP). 10. To be registered, the WLRP must be a qualifying insured or self-insured short-term disability plan. A smaller reduction applies for qualifying Cumulative Paid Sick Leave plans. 11. Disability benefits commence in the 4th month following the date of disability. 12. Quebec Parental Insurance Plan benefits vary depending on the type of plan, type of leave, and whether the leave is shared between parents.

Pension and benefits statistics 2018 – Morneau Shepell

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