The federal government filed a regulatory amendment to the Canada Pension Plan Regulations which prescribes the manner of employee elections (or revocations) regarding the new Post-Retirement Benefit (“PRB”), which will be available under the Canada Pension Plan (“CPP”), effective January 1, 2012.

The amendment was first proposed in October of 2011, as previously reported.

The PRB extends participation in the CPP to those employees (and self-employed workers) who are 60 years of age or older and who receive CPP benefits while continuing to work. Contributions towards the PRB will be mandatory for employees who are at least 60 years of age but under the age of 65 and their employers, and optional in respect of employees who have reached 65 years of age but who are under the age of 70.

Individuals in the latter group will be required to contribute towards the PRB unless they elect to opt out.

The regulatory amendment will also extend the time limit for payments of CPP contributions where an election has been made in respect of self-employed earnings.

For more information on these changes to the CPP, see our FTR Now of December 22, 2011, "Changes to the Canada Pension Plan (CPP): Important Information for Employers."