6.10.1. CPP / QPP Pension Benefit Payment Rates
*These values have not been updated for 2015*TYPE OF BENEFIT Max monthly benefit
2014
Max monthly benefit 2013
AVERAGE monthly benefit 2013
Disability benefit $1,236.35 $1,212.90 $882.80
Retirement benefit (at age 65) $1,038.33 $1,012.50 $594.19
Survivors benefit (under age 65) $567.91 $556.64 $402.23
Survivors benefit (age 65 and over) $623.00 $607.50 $300.99
Children of disabled contributors benefit $230.72 $228.66 $228.66
Children of deceased contributors benefit $230.72 $228.66 $228.66
Combined survivors & retirement benefit (pension at age 65)
$1,038.33 $1,012.50 $594.19
Combined survivors & disability benefit $1,236.35 $1,212.90 $882.80 Death Benefit (Maximum lump sum) NOT INDEXED $2,500.00 $2,500.00 $2,286.03
FLAT RATE Earnings Related Portion
CPP Disability benefit $457.60 $453.52 $771.81
CPP Survivor benefit - younger than 65 $178.54 $176.95 $402.23
Change the rates for all Retirement, Disability, and Survivor Benefits as indicated above.
A. The average monthly CPP Retirement benefit for 2013 was $594.19/month (or annual benefit of $7,130.28), while the maximum monthly CPP Retirement benefit for 2013 was $1,012.50/month (or annual benefit of $12,150.00).
B. NaviPlan uses the ‘max’ monthly benefits, $1,012.50/month or annual benefit of $12,150.00. CPP Disability Benefitflat rate
l 2013: $453.52 l 2014: $457.60
CPP Survivor Benefit – younger than 65flat rate
l 2013: $176.95 l 2014: $178.54
OAS BENEFIT Quarter 2014 Max Monthly Benefit 2013 Max Monthly Benefit 2012 Max Monthly Benefit
All recipients Jan-Mar $551.54 $546.07 $540.12
All recipients Apr-Jun $554.54 $546.07 $540.12
All recipients Jul-Sep $558.71 $546.89 $544.98
All recipients Oct-Dec $563.74 $550.99 $544.98
Clawback Threshold $71,593 $70,954 $69,562
Clawback Rate 15% 15% 15%
Eliminated when net income is equal to or greater than
$116,103 $114,640 $112,772
6.10.2.1. Update the existing OAS (quarterly) Monthly Benefit rate
l 2013: $546.07 l 2014: $551.54 l 2015: $563.74
6.10.2.2. HRDC review the Old Age Security benefit rates in Jan, Apr, Jul, and Oct and adjust rates accordingly to reflect increases in the cost of living as measured by the Consumer Price Index.
A. The CDN NaviPlan applications use the quarterly rate noted above and multiplies this value by 12 months to determine the OAS annual maximum pension amount. As a result of this calculation the OAS annual maximum pension amount may be understated.
6.10.2.3. Change the OAS Clawback Income Threshold amount
l 2013: $70,954 l 2014: $71,593 l 2015: $72,809
6.10.2.4. The OAS Clawback Threshold is indexed to inflation. 6.10.2.5. Change the OAS Benefit Elimination net income amount
l 2013: $114,640 or greater l 2014: $115,716 or greater l 2015: $116,163 or greater
6.10.2.6 OAS benefits are eliminated when an individual’s net income is $116,103 or greater. A. Note that the HRSDC may adjust the OAS Benefit Elimination value with each quarter.
clawback applies to net income. Net income in excess of the clawback threshold is clawed back at 15%.
A. For example using the 2013 threshold of $70,954 and a net income of $75,000 the clawback will be $606.90. The formula is as follows:
i. Individual’s net income minus the OAS Threshold amount for the year equals the Difference between the individual’s income amount and the OAS threshold amount
ii. Difference multiplied by 15% = the amount of OAS Repayment
iii. OAS Repayment amounts are deducted on a monthly basis from the following year OAS payments
l $75,000 - $70,954 = $4,046 * 15% = $606.90 TOTAL OAS Repayment for the year 2013
6.10.3. RRSP Cont ribut ion Limit
6.10.3.1. Update the RRSP Contribution Limit, the maximum amount:
l 2013: $23,820 l 2014: $24,270 l 2015: $24,930 l 2016: $25,370
6.10.3.2. The Income Required amount in order to make this maximum contribution is indexed to increases in the Average Industrial Wage beginning in 2010 and following years.
6.10.4. Defined Benefit / RPP Maximum Pension Benefit Limit
6.10.4.1. Change the Defined Benefit Maximum Pension Benefit limit amount
l 2013: $2,696.67 l 2014: $2,770.00 l 2015: $2,818.89
6.10.4.2. Note that the Defined Benefit RPP maximum pension benefit limit is 1/9thof the Money Purchase RPP / RRSP annual contribution limit.
A. Source for both RRSP Contribution limit and Defined Benefit limits: http://www.cra-arc.gc.ca/tx/rgstrd/papspapar- fefespfer/lmts-eng.html?=eml20111104
6.10.5. Defined Cont ribut ion/ Money Purchase Plan Cont ribut ion Limit 6.10.5.1. Change the Defined Contribution Pension Plan contribution limit amount
l 2013: $24,270 l 2014: $24,930 l 2015: $25,370
6.10.5.2. The contribution limit for these plans is similar to the RRSP contribution limit, i.e. 18% of earned income. 6.10.6. TFSA Cont ribut ion Limit
6.10.6.1. From 2009-2012, the TFSA Contribution Limit amount was kept at $5,000. In 2013, this amount started being indexed for inflation (2013 index amount is 2.0%, 0.9% for 2014).
A. Starting in 2015, the annual TFSA contribution limit will increase from $5,500 to $10,000 and will remain at this level for subsequent years. The limit will no longer be indexed to inflation.
B. Source: http://www.cra-arc.gc.ca/tx/rgstrd/tfsa-celi/bt-eng.html 6.10.7. Home Buyers’ Plan (HBP) Limit s
6.10.8. RRI F Minimum
6.10.8.1. As of 2015, Canadians who are 71 will now only have to withdraw 5.28% from their RRIF, down from the current 7.38%.
6.10.9. Canada Educat ion Savings Grant (CESG) Qualifying Net Family I ncome Threshold Amount s Year Child's family has qualifying net income
for the year of less than (bracket 1)
Child's family has qualifying net income for the year of less than (bracket 2)
More Than (bracket 3) Bracket 1 Tax Rate Bracket 2 Tax Rate Bracket 3 Tax Rate 2015 $44,700.00 $89,401.00 $89,401.01 40.0% 30.0% 20.0% 2014 $43,953.00 $87,907.00 $87,907.01 40.0% 30.0% 20.0% 2013 $43,561.00 $87,123.00 $87,123.01 40.0% 30.0% 20.0% 2012 $42,707.00 $85,415.00 $85,415.01 40.0% 30.0% 20.0% 2011 $41,544.00 $83,088.00 $83,088.01 40.0% 30.0% 20.0%
6.10.8.1. Change the CESG family net income thresholds as noted above in both the Planning levels and the Education Savings Calculator.
A. The CESG income brackets are indexed yearly based on inflation and are the same as the Federal 15% and 22% tax bracket income thresholds.
6.10.8.2. Maintain all other rates/values associated with the RESP and CESG plans.
6.11. Dividend Tax Credit – Federal & Provincial – NPE & NPS
6.11.1.1. The Dividend Tax Credit is a federal/provincial non-refundable tax credit.6.11.1.2. Canadian source dividends are either: A. Eligible dividends, i.e. Enhanced, or
B. Other than eligible dividends, i.e. Existing (or non-eligible)
6.11.2. NPE – Dividend Tax Credit Rat es & NPSE v11.8, v12.2 Det ailed Tax Met hod
6.11.2.1. Update the Dividend Tax Credit rates, both Eligible and Other than eligible for those jurisdictions as necessary. Dividend Tax Credits - NPE (Public Corp - Eligible, Enhanced Tax Credit)
Province 2015 2014 2013 2012 2011 Alberta 10.00% 10.00% 10.00% 10.00% 10.00% British Columbia 10.00% 10.00% 10.00% 9.76% 10.31% Manitoba 8.00% 8.00% 8.00% 8.00% 11.00% New Brunswick 12.00% 12.00% 12.00% 12.00% 12.00% Newfoundland/Labrador 5.40% 11.00% 11.00% 11.00% 11.00% Northwest Territories 11.50% 11.50% 11.50% 11.50% 11.50% Nova Scotia 8.85% 8.85% 8.85% 8.85% 8.85% Nunavut 5.51% 5.51% 5.51% 5.51% 5.82% Ontario 10.00% 10.00% 6.40% 6.40% 6.40%
Prince Edward Island 10.50% 10.50% 10.50% 10.50% 10.50%
Quebec 11.90% 11.90% 11.90% 11.90% 11.90%
Yukon 15.00% 15.08% 15.08% 15.08% 15.08%
Federal 15.02% 15.02% 15.02% 15.02% 16.4%
Dividend Tax Credits - NPE (CCPC*, other than eligible dividends)
Province 2015 2014 2013 2012 2011 Alberta 3.1% 3.1% 3.48% 3.48% 3.48% British Columbia 2.59% 2.59% 3.40% 3.40% 3.40% Manitoba 0.83% 0.83% 1.75% 1.75% 1.75% New Brunswick 4.00% 5.30% 5.30% 5.30% 5.30% Newfoundland/Labrador 4.10% 4.10% 5.00% 5.00% 5.00% Northwest Territories 6.00% 6.00% 6.00% 6.00% 6.00% Nova Scotia 3.50% 5.87% 7.70% 7.70% 7.70% Nunavut 3.05% 3.05% 4.00% 4.00% 4.00% Ontario 4.50% 4.50% 4.50% 4.50% 4.50%
Prince Edward Island 3.20% 3.2% 1.00% 1.00% 1.00%
Quebec 7.05% 7.05% 8.00% 8.00% 8.00%
Saskatchewan 3.05% 3.05% 4.00% 4.00% 5.00%
Yukon 3.17% 4.03% 4.51% 4.51% 4.51%
Federal 11.02% 11.02% 13.33% 13.3% 13.3%
Year Enhanced Rate Gross Up (all provinces) Existing General Gross-Up (all provinces)
2014 38% 18%
2013 38% 25%
2012 38% 25%
2011 41% 25%
l 2013: 138% l 2014: 138%
6.11.2.3. The taxable amount of Federal dividend tax credit on the total Eligible / Enhanced grossed up amount is unchanged for 2013.
l 2013: 15.02% l 2014: 15.02%
6.11.2.4. The Federal dividend tax credit rate factor for Eligible / Enhanced dividends is already implemented for 2014.
l 2013: 2/3 l 2014: 13/18
6.11.2.5. Other than eligible dividend gross-up rate already implemented for 2015:
Year Other than eligible
dividend gross up
Other than eligible dividend tax credit
2013 125% 13.33% 2014 118% 11.02% 2015 118% 11.0169% 2016 117% 10.5217% 2017 117% 10.0206% 2018 116% 9.5125% After 2018 115% 9.030%
6.11.3. NPE – Exist ing Federal Dividend Tax Credit Calculat ion Revised 6.11.3.1. 2014 Eligible / Enhanced dividends calculation: