What happens to my CPP contributions if I become a non-resident?

The Good News: Your CPP Contributions Are Safe

Let's dive into what happens to your Canada Pension Plan (CPP) contributions if you become a non-resident. First things first, don't worry! Your CPP contributions don't disappear into thin air when you leave Canada. The money you've put into the system remains intact¹.

Eligibility for CPP Benefits

Here's the cool part: even if you become a non-resident, you can still be eligible for CPP benefits when you retire. The Canadian government doesn't discriminate based on your residency status when it comes to CPP¹.

How It Works

Let's break it down:

Your contributions stay put: All the money you've contributed to CPP while working in Canada remains in the system.

You can still qualify: As long as you've made at least one valid contribution to the CPP, you could be eligible for a pension.

Amount depends on contributions: The amount you'll receive depends on how much and how long you've contributed, not on where you live when you retire.

What About Continuing Contributions?

Now, you might be wondering, "Can I keep contributing to CPP after I leave Canada?" Well, that's a bit trickier.

Generally, no: Once you're no longer working in Canada, you typically can't make CPP contributions.

Exception: If you're working for a Canadian company outside Canada, there might be some options. Your employer could apply for coverage using a special form (CPT13)¹.

Claiming Your CPP

When the time comes to claim your CPP benefits:

Apply as usual: You'll need to apply for your CPP retirement pension, just like residents do.

Provide documentation: You might need to provide extra documentation to prove your identity and eligibility.

Payment options: You can usually receive your payments in your new country of residence.

A Word of Caution

Remember, while you can receive CPP benefits as a non-resident, tax implications in your new country of residence might affect how much you actually get to keep. It's always a good idea to consult with a tax professional who understands international tax agreements.

So there you have it! Your CPP contributions are safe and sound, waiting for you when you're ready to retire, no matter where in the world you end up. It's just one less thing to worry about as you embark on your international adventure!

Rotaru CPA