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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

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  • Canada, as per T4 slips and Canada Pension Plan / Quebec Pension Plan...
    – DJohnM
    Commented Feb 27, 2015 at 21:03

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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

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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.

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    UK rules and terms are irrelevant to a Canadian Pension Plan statement...
    – DJohnM
    Commented Feb 27, 2015 at 22:15
  • @User58220 but the same basic principals apply as Canada is ex empire
    – Pepone
    Commented Feb 27, 2015 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
    Commented Feb 28, 2015 at 0:46
  • @ChrisW.Rea really the Canadian state pension as a form of career average that's very generous
    – Pepone
    Commented Feb 28, 2015 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
    Commented Feb 28, 2015 at 17:38

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