CPP Cancellation and Repayment Periods Extended

Summary#

The Regulations Amending the Canada Pension Plan Regulations extend the time a person can cancel a CPP retirement benefit and the time they have to repay it. The change increases both windows from six months to twelve months and took effect on registration (registered September 21, 2020).

What it does#

• Extends the period a beneficiary has to ask to cancel a CPP retirement benefit from six months to twelve months after payments start.
• Extends the period to repay any amounts already paid (after a cancellation) from six months to twelve months.
• Leaves in place the rule that a retirement pension cannot be cancelled in favour of a disability pension if the disability’s deemed start date is in or after the month the retirement pension first became payable.
• These changes amend the Canada Pension Plan Regulations and came into force on registration (September 21, 2020).

Who's affected#

• People who receive a CPP retirement pension and might prefer to cancel it — for example because getting the pension could reduce or cut off other income‑tested benefits.
• Seniors who are or will be automatically enrolled in CPP at age 70. The government estimated about 40,000 people over 70 who were missing their CPP would be proactively enrolled in 2020 (average monthly pension $302), plus about 1,500 turning 70 that year (average monthly pension $645). By 2040, up to 4,000 people could be proactively enrolled each year.
• Service Canada, which approves cancellation requests and handles repayments.
• Small businesses are not affected, according to the regulatory analysis.

Why it matters#

• It gives people more time — from six months to twelve months — to check how taking (or being automatically given) a CPP pension will affect other income‑tested benefits like drug coverage or subsidized housing.
• That extra time can help seniors avoid unintentionally losing other benefits or making rushed financial decisions.
• The government’s analysis says there are no added costs and no expected impacts on small business.