$2460 Additional Pension Coming for Canada in 2024 : is CRA Sending $2460 Additional Pension For Canadians ? Know Payment Dates

Canadian pensioners might feel rejoiced on the news of $2460 Additional Pension Coming for Canada. This new benefit will be added as an additional amount in CPP as a part of enhanced benefit to pensioners to overcome the financial issues caused by the inflation. This article will explain what the $2460 additional pension coming for Canada is, how it works, when it is coming for Canadians, and who all are eligible to receive it. Read Complete Article to get more insights about this.

$2460 Additional Pension Coming

The $2460 Additional Pension Plan coming for Canada refers to an enhancement in the Canada Pension Plan (CPP), which provides additional benefits to eligible Canadians. Introduced in 2023, the Federal Government and authorities of the Canada Revenue Agency (CRA) have mutually decided to come up with this plan to target the boost retirement income for individuals and their families.

CRA Benefit Payment Dates 2024

Benefit Payment Dates 2024 

CPP OAS Payment Dates 2024

Through this plan, each beneficiary will get an additional $2460 in addition to their current CPP benefits. However, its exact value will be determined by the CRA’s pension payments where each recipient will receive a portion equal to their combined contributions.

$2460 Additional Pension Coming for Canada in 2024 : is CRA Sending $2460 Additional Pension For Canadians ? Payment Dates

Details on $2460 Additional Pension For Canada

Name $2460 Additional Pension
Country of Origin Canada
Regulating body / Department Canada Revenue Agency (CRA)
Year 2024
Category Government Aid
Objective Reduce debt burden on elders due to rising inflation.
Benefits Additional benefits on Canada Pension Plan (CPP).
Expected Additional Amount C$ 2460
Applicable persons Old age and retirees already receiving CPP payments.
Age Limit 65+ years
Expected month of payment April, 2024
Payment mode Online

Offline

Website https://www.canada.ca/en/services/benefits/

 

Understanding $2460 Additional Pension Plan coming for Canada

The $2460 additional pension coming for Canada is a fresh benefit that will be introduced to the CPP as part of an expanded upgrade. The improvement would be a long-term part of CPP reform targeting to increase Canadians’ retirement income while making it more secure and sustainable. The CPP enhancement consists of two phases:

  1. Phase 1 (2019–2023): Increased CPP contribution rates and the maximum pensionable earnings (MPE) to $66,600.
  2. Phase 2 (2024–2025): Introduces a higher earnings ceiling and a second CPP contribution (CPP2). The 2024 MPE is $73,200, with a 4% CPP2 contribution rate.

The $2460 additional pension will be a part of the CPP enhancement, resulting from the second phase. It represents the maximum CPP2 benefits an individual can receive in 2024 by contributing to CPP2 on earnings above the MPE. The calculation is as follows:

$2460 ≈ (MPE from CCP2 – MPE from CPP1) x contribution rate% x 12 months

Please note that this is the maximum proposed amount which a person can get after taking the maximum amounts from both phases. It is subjected to changes such as work history, contribution rates, changes in MPE and retirement date.

Eligibility criteria for $2460 Additional Pension Plan coming for Canada.

Although at the planned stage, the most common eligibility criteria would be:

  1. Person should be at least 60 years of age.
  2. He must be a Canadian citizen who has a valid Social Insurance Number (SIN).
  3. He must be a recipient of CPP or CPP disability.
  4. He must have contributed to CPP2 on earnings above MPE.
  5. Valid contribution through work done in Canada or credits from spouse or partner.
  6. For residents working outside Canada, they must return to Canada (with proof on passport) with proof of employment within 6 months of quitting job.

 $2460 Additional Pension Payment Dates

Following are the proposed dates with CPP payment dates if $ 2460 Additional Pension Plan is implemented:

February 24, 2024
April 27, 2024
April 27, 2024
May 26, 2024
June 26, 2024
July 27, 2024
August 26, 2024
September 26, 2024
October 27, 2024
November 25, 2024
December 22, 2024

 

How to apply and check the status For Canada Additional Pension ?

There won’t be a separate application to apply for the $2460 additional pension. It will come as an added amount with CPP on the mentioned dates in 2024, if implemented. But if one wishes to apply, then they can apply and then check the status through My Service Canada Account (MSCA).

Reality Checks on $2460 Additional Pension Plan coming or Not

  • Status: Currently, the recipients are still awaiting their status. They can expect to receive the payments in February or April as soon as the government passes orders and CRA implements this plan.
  • Monthly Benefit: The $2460 additional pension is not a one-time payment or a bonus. It is a monthly benefit that eligible pensioners would receive if they contributed to the CPP2 on earnings above the MPE and up to the second earnings ceiling in 2024 or later.
  • Not Universal: This benefit is not fixed; it represents the maximum possible amount a person can receive based on their earnings and contributions. The actual amount depends on individual circumstances, including age, work history, and retirement date.
  • Earned Benefit: The $2460 additional pension is not free; pensioners earn it by contributing to the CPP2. These contributions are deducted from both employees’ and employers’ earnings, like regular CPP contributions.
  • No Supplement or Replacement: It is an additional benefit, not a replacement or supplement for the regular CPP pension. Eligible pensioners who contributed to the CPP throughout their working life will continue to receive their regular CPP pension.
  • Payment Mode: Primarily, it will be a direct deposit every month. If one has opted offline, then checks would be mailed during last three days of each business month.
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