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Canada Pension Plan Children’s Benefits

This blog has featured Canada Pension Plan (CPP)-related posts before. In a similar vein, this post will discuss about another CPP-related benefit available to dependent children of disabled or deceased CPP contributors.

Types of Children’s Benefits

Disabled contributor’s child benefit. This benefit is available to the child of a CPP contributor who is receiving a CPP disability benefit. A monthly payment is offered to a biological child, adopted child, or a child who is under the custody of the disabled CPP beneficiary.

Surviving child benefit. This benefit is available to the child of a deceased CPP contributor. A monthly payment is offered to a biological child, adopted child, or a child who was in the custody of the contributor at the time of their death. It should be remembered that the deceased contributor must have made adequate contributions to the CPP for a benefit payment to be made.

A child may be able to receive a maximum monthly amount of $230.72 (as of 2014) and a maximum of two benefits is paid per child.

Eligibility requirements

In order to receive monthly children’s benefits payments, the child must be either:

  • Under 18 years of age; or,
  • Between the ages of 18 and 25 and be a full-time student at a recognized educational institution.

In addition, the child must be one of the following:

  • A biological child of the contributor;
  • A child adopted legally or ‘in fact’ by the contributor while under the age of 21; and,
  • A child legally or ‘in fact’ in the care and custody of the contributor while under the age of 21.

Contribution requirements

The deceased contributor must have paid into the CPP for a minimum of 3 years and if the contribution period (of the deceased contributor) is more than 9 years, then they must have contributed to the CPP in one-third of the calendar years in their contribution period or 10 calendar years (the lesser of the two is used). Please note that international agreements that Canada has in place may be used to satisfy the above requirements.

The Beneficiary

  • If the child is under 18 years of age, the benefit is usually paid to the parent or guardian (exceptions are made).
  • If the child is aged 18 or older (up to 25 years), the benefit is paid directly to them.

It is the responsibility of the beneficiary to keep Service Canada informed if the child’s relationship status to the contributor changes, the child stops attending school, or changes attendance status from full-time to part-time.

Application process

A person (could be a dependent child or their parent or guardian) can submit an application when one of the following occurs:

  • A parent or guardian has applied for a disability benefit;
  • A child is brought into the custody of a parent or guardian who is a disability beneficiary; and,
  • A parent or guardian dies.

It is vital that an application is submitted at the earliest since retroactive CPP payments are only made for up to 12 months.

For complete details about the application process and forms to be used, please refer to this page. Additional information about the program can also be found at the same link.

If you receive payments as part of the CPP Children’s Benefits, please offer any suggestions you think would be useful to fellow readers.

About the Author: Clark works in Saskatchewan and has been working to build his (DIY) investment portfolio, structured for an early retirement. He loves reading (and using the lessons learned) about personal finance, technology and minimalism. You can read his other articles here.

 

 

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About the author: Clark works in Saskatchewan and has been working to build his (DIY) investment portfolio, structured for an early retirement. He loves reading (and using the lessons learned) about personal finance, technology and minimalism. You can read his other articles here.

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