$2460 Additional Pension by CRA: When is it coming for Canadians? Payment Dates

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Are you a Canadian pensioner who is looking for ways to boost your retirement income? If so, you might be interested in the $2460 additional pension by CRA that is coming in 2024. This is a new benefit that will be added to the Canada Pension Plan (CPP) as part of the CPP enhancement. In this article, we will explain what the $2460 additional pension is, how it works, when it is coming for Canadians, and who is eligible to receive it. We will also address some common questions and misconceptions about this benefit. Let’s get started!

Calendar with highlighted payment dates and a $2460 check representing the CRA additional pension for Canadians, set against a backdrop of iconic Canadian imagery.
Unlock Your $2460 CRA Pension: Key Dates for Canadians to Know!

Key Takeaway Box

Here are the main points to remember about the $2460 additional pension by CRA:

  • It is a new benefit that will be added to the CPP as part of the CPP enhancement.
  • It is the maximum amount of CPP2 benefits that a person can receive in 2024 if they contribute to the CPP2 on earnings above the MPE.
  • It is not a fixed amount that everyone will receive. It is the maximum possible amount that a person can receive in 2024 based on their earnings and contributions.
  • It will depend on the individual circumstances of each person, such as their age, work history, and retirement date.
  • It will increase over time as the second earnings ceiling and the CPP2 contribution rate increase.
  • It will be paid monthly, along with the regular CPP benefits, starting in 2024.
  • It will be subject to the same rules and adjustments as the regular CPP benefits, such as age, taxation, and income-tested benefits.

What is the $2460 Additional Pension?

The $2460 additional pension is a new benefit that will be added to the CPP as part of the CPP enhancement. The CPP enhancement is a gradual and long-term reform of the CPP that aims to increase the retirement income of Canadians and make it more secure and sustainable. The CPP enhancement consists of two phases:

  • The first phase started in 2019 and will last until 2023. It involves increasing the CPP contribution rates and the maximum pensionable earnings (MPE) for both employees and employers. The MPE is the annual income limit that is subject to CPP contributions and benefits. The MPE for 2023 is $66,600.
  • The second phase will start in 2024 and will last until 2025. It involves introducing a second, higher earnings ceiling and a second additional CPP contribution (CPP2) for both employees and employers. The second earnings ceiling for 2024 is $73,200. The CPP2 contribution rate for 2024 is 4%.

The $2460 additional pension is the result of the second phase of the CPP enhancement. It is the maximum amount of CPP2 benefits that a person can receive in 2024 if they contribute to the CPP2 on earnings above the MPE. The $2460 additional pension is calculated as follows:

  • $2460 = ($73,200 – $66,600) x 4% x 12 months
  • This means that a person who earns $73,200 or more in 2024 and contributes to the CPP2 on the excess amount ($6,600) will receive an additional pension of $2460 in 2024.

The $2460 additional pension is not a fixed amount that everyone will receive. It is the maximum possible amount that a person can receive in 2024 based on their earnings and contributions. The actual amount of additional pension that a person will receive will depend on their circumstances, such as their age, work history, and retirement date. The additional pension will also increase over time as the second earnings ceiling and the CPP2 contribution rate increase.

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$2460 Additional Pension Overview 2024

Here is a quick overview of the $2460 additional pension by CRA for 2024:

  • It is a new benefit that will be added to the CPP as part of the CPP enhancement.
  • It is the maximum amount of CPP2 benefits that a person can receive in 2024 if they contribute to the CPP2 on earnings above the MPE.
  • It is calculated as ($73,200 – $66,600) x 4% x 12 months = $2460.
  • It is not a fixed amount that everyone will receive. It is the maximum possible amount that a person can receive in 2024 based on their earnings and contributions.
  • It will depend on the individual circumstances of each person, such as their age, work history, and retirement date.
  • It will increase over time as the second earnings ceiling and the CPP2 contribution rate increase.

When is it coming for Canadians?

The $2460 additional pension by CRA is coming in 2024. This is when the second phase of the CPP enhancement will start and the CPP2 contributions and benefits will be implemented. The CPP2 contributions will be deducted from the earnings above the MPE of $66,600 and up to the second earnings ceiling of $73,200. The CPP2 benefits will be paid to the eligible pensioners who contributed to the CPP2 on those earnings.

The CPP2 benefits will be paid monthly, along with the regular CPP benefits. The payment dates for the CPP2 benefits will be the same as the payment dates for the regular CPP benefits. The payment dates for 2024 are as follows:

  • January 27, 2024
  • February 24, 2024
  • March 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

Eligibility to Receive the $2460 Additional Pension

To be eligible to receive the $2460 additional pension by CRA, a person must meet the following criteria:

  • They must be a Canadian resident who is at least 18 years old and has a valid Social Insurance Number (SIN).
  • They must have contributed to the CPP2 on earnings above the MPE and up to the second earnings ceiling in 2024 or later.
  • They must have applied for and received the regular CPP retirement pension or the CPP disability pension.

The $2460 additional pension is not automatic. A person must apply for it separately from the regular CPP pension. The application process and the eligibility requirements for the regular CPP pension are the same as before. A person can apply for the regular CPP pension as early as age 60 or as late as age 70. The amount of the regular CPP pension will depend on the person’s earnings and contributions to the CPP throughout their working life.

The $2460 additional pension is not affected by the age or the amount of the regular CPP pension. A person can receive the $2460 additional pension regardless of when or how much they receive the regular CPP pension. However, the $2460 additional pension is subject to the same rules and adjustments as the regular CPP pension. For example, the $2460 additional pension will be reduced if the person starts receiving it before age 65, or increased if the person starts receiving it after age 65. The $2460 additional pension will also be taxable and may affect the eligibility for other income-tested benefits, such as the Guaranteed Income Supplement (GIS).

Fact Checks About the $2460 Additional Pension

There are some common questions and misconceptions about the $2460 additional pension by CRA that need to be clarified. Here are some fact-checks about this benefit:

  • The $2460 additional pension is not a one-time payment or a bonus. It is a monthly benefit that will be paid to the eligible pensioners who contributed to the CPP2 on earnings above the MPE and up to the second earnings ceiling in 2024 or later.
  • The $2460 additional pension is not a universal benefit that everyone will receive. It is the maximum possible amount that a person can receive in 2024 based on their earnings and contributions. The actual amount of additional pension that a person will receive will depend on their circumstances, such as their age, work history, and retirement date.
  • The $2460 additional pension is not a free benefit that the government is giving away. It is a benefit that the pensioners will earn by contributing to the CPP2 on their earnings above the MPE and up to the second earnings ceiling. The CPP2 contributions will be deducted from the earnings of both employees and employers, similar to the regular CPP contributions.
  • The $2460 additional pension is not a replacement or a supplement for the regular CPP pension. It is an additional benefit that will be added to the regular CPP pension. The regular CPP pension will continue to be paid to the eligible pensioners who contributed to the CPP throughout their working life.

Source: (1) Second additional CPP contribution (CPP2) rates and maximums. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html. (2) Canada Revenue Agency announces maximum pensionable earnings and …. https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/maximum-pensionable-earnings-contributions-2024.html.

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