Canadian pensioners might feel rejoiced on the news of $2460 Additional Pension Coming for Canada in 2024. This new benefit will be added as an additional amount in CPP as a part of enhanced benefit to pensioners to overcome the financial issues caused by the inflation. This article will explain what the $2460 additional pension coming for Canada is, how it works, when it is coming for Canadians, and who all are eligible to receive it. Read Complete Article to get more insights about this.
Note- please confirm this $2460 additional pension from the official website of the CRA as the EJSR is not accountable for the credentials.
$2460 Additional Pension Coming
The $2460 Additional Pension Plan coming for Canada refers to an enhancement in the Canada Pension Plan (CPP), which provides additional benefits to eligible Canadians. Introduced in 2023, the Federal Government and authorities of the Canada Revenue Agency (CRA) have mutually decided to come up with this plan to target the boost retirement income for individuals and their families.
Canada Pension Payment Dates May 2024
Through this plan, each beneficiary will get an additional $2460 in addition to their current CPP benefits. However, its exact value will be determined by the CRA’s pension payments where each recipient will receive a portion equal to their combined contributions.
Details on $2460 Additional Pension For Canada
| Name | $2460 Additional Pension |
| Country of Origin | Canada |
| Regulating body / Department | Canada Revenue Agency (CRA) |
| Year | 2024 |
| Category | Government Aid |
| Objective | Reduce debt burden on elders due to rising inflation. |
| Benefits | Additional benefits on Canada Pension Plan (CPP). |
| Expected Additional Amount | C$ 2460 |
| Applicable persons | Old age and retirees already receiving CPP payments. |
| Age Limit | 65+ years |
| Expected month of payment | June, 2024 |
| Payment mode | Online |
| Website | https://www.canada.ca/en/services/benefits/ |
Understand $2,460 Additional Pension Plan Approved for Canada
The $2460 additional pension coming for Canada is a fresh benefit that will be introduced to the CPP as part of an expanded upgrade. The improvement would be a long-term part of CPP reform targeting to increase Canadians’ retirement income while making it more secure and sustainable. The CPP enhancement consists of two phases:
- Phase 1 (2019–2023): Increased CPP contribution rates and the maximum pensionable earnings (MPE) to $66,600.
- Phase 2 (2024–2025): Introduces a higher earnings ceiling and a second CPP contribution (CPP2). The 2024 MPE is $73,200, with a 4% CPP2 contribution rate.
The $2460 additional pension will be a part of the CPP enhancement, resulting from the second phase. It represents the maximum CPP2 benefits an individual can receive in 2024 by contributing to CPP2 on earnings above the MPE. The calculation is as follows:
$2460 ≈ (MPE from CCP2 – MPE from CPP1) x contribution rate% x 12 months
Please note that this is the maximum proposed amount which a person can get after taking the maximum amounts from both phases. It is subjected to changes such as work history, contribution rates, changes in MPE and retirement date.
Eligibility for $2460 Additional Pension Plan
Although at the planned stage, the most common eligibility criteria would be:
- Person should be at least 60 years of age.
- He must be a Canadian citizen who has a valid Social Insurance Number (SIN).
- He must be a recipient of CPP or CPP disability.
- He must have contributed to CPP2 on earnings above MPE.
- Valid contribution through work done in Canada or credits from spouse or partner.
- For residents working outside Canada, they must return to Canada (with proof on passport) with proof of employment within 6 months of quitting job.
$2460 Additional Pension Payment Dates
Following are the proposed dates with CPP payment dates if $ 2460 Additional Pension Plan is implemented:
| 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 |
Apply and Check the Status For Canada Additional Pension ?
There won’t be a separate application to apply for the $2460 additional pension. It will come as an added amount with CPP on the mentioned dates in 2024, if implemented. But if one wishes to apply, then they can apply and then check the status through My Service Canada Account (MSCA).
Reality Checks Whether $2460 Additional Pension coming or Not?
- Status: Currently, the recipients are still awaiting their status. They can expect to receive the payments early, as soon as the government passes orders and CRA implements this plan.
- Monthly Benefit: The $2460 additional pension is not a one-time payment or a bonus. It is a monthly benefit that eligible pensioners would receive if they contributed to the CPP2 on earnings above the MPE and up to the second earnings ceiling in 2024 or later.
- Not Universal: This benefit is not fixed; it represents the maximum possible amount a person can receive based on their earnings and contributions. The actual amount depends on individual circumstances, including age, work history, and retirement date.
- Earned Benefit: The $2460 additional pension is not free; pensioners earn it by contributing to the CPP2. These contributions are deducted from both employees’ and employers’ earnings, like regular CPP contributions.
- No Supplement or Replacement: It is an additional benefit, not a replacement or supplement for the regular CPP pension. Eligible pensioners who contributed to the CPP throughout their working life will continue to receive their regular CPP pension.
- Payment Mode: Primarily, it will be a direct deposit every month. If one has opted offline, then checks would be mailed during last three days of each business month.
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Julie Kanary is an accomplished author and financial analyst with a keen interest in social security, tax, and finance-related topics. With a wealth of experience in the field, Julie has established herself as a reputable voice in the domain of economic policy and financial literacy.Drawing upon her extensive background in economics and finance, Liam contributes regularly & offering insightful perspectives and analysis on a wide range of topics.