How does the Canada Pension Plan work?
The Canada Pension Plan or CPP is a contributory, earnings-related social insurance program. It provides benefits to contributors on retirement, disability and death. The CPP applies throughout Canada except in Qubec where a similar program, the Qubec Pension Plan (or QPP), is in force. The two programs are coordinated under agreements between the two governments. The program covers virtually all employed and self-employed persons in Canada (except in Qubec where the QPP applies) who are between the ages of 18 and 70 and who earn more than a minimum level of earnings in a calendar year. The CPP is financed through contributions from employees, employers and self-employed persons, as well as investment earnings from the Canada Pension Plan Fund. Starting in 1998, a new CPP Investment Board will invest all new contributions in capital markets to achieve a better return. Human Resources Development Canada administers the Canada Pension Plan through a network of Human Resource Centers of C
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