0

On my T4 from my employer, it says : CPP/QPP pensionable earnings. And there is an amount for this field.

What does this mean? Is it the pension I am going to get when I turn 65? I dont think so. This number is almost half my salary, clearly it is too much to expect such a big pension

  • Canada, as per T4 slips and Canada Pension Plan / Quebec Pension Plan... – DJohnM Feb 27 '15 at 21:03
4

The "Pensionable Earnings" referred to in box 26 means the amount of your income that counts towards determining your CPP (or QPP for Quebec) contributions. For many this will be the same amount as box 14, but if your income exceeds the maximum pensionable earnings amount ($52500 for 2014 tax year) then you will instead just see $52500 in box 26.

Read more about CPP calculations on the CRA website

-1

I assume from the wording you are in a Final Salary pension.

In FS schemes not all you pay is pensionable ie bonus's don't count some times allowances such as London weighting are counted as pensionable.

  • 2
    UK rules and terms are irrelevant to a Canadian Pension Plan statement... – DJohnM Feb 27 '15 at 22:15
  • @User58220 but the same basic principals apply as Canada is ex empire – Pepone Feb 27 '15 at 22:26
  • Canada Pension Plan is our state pension, not a private scheme. It works like a Career Average plan, not FS. – Chris W. Rea Feb 28 '15 at 0:46
  • @ChrisW.Rea really the Canadian state pension as a form of career average that's very generous – Pepone Feb 28 '15 at 16:34
  • @Pepone Well, the catch is that it only aims to replace 25% of career earnings, and only on earnings up to $52,500. – Chris W. Rea Feb 28 '15 at 17:38

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.