The Canada Revenue Agency has announced an increase of $400 (from $54,900 in 2016 to $55,300 in 2017) to the maximum pensionable earnings under the Canada Pension Plan.
Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP. The basic exemption amount remains at $3,500.
The employee and employer contribution rates for 2017 will remain unchanged at 4.95 per cent and the self-employed contribution rate will remain at 9.9 per cent. The maximum employer and employee contribution to the CPP will increase slightly to $2,564.10 each for 2017 as will the maximum self-employed contribution at $5,128.20.
The federal government is also adding standards for Canadians with terminal illness or grave medical conditions who are applying for the Canadian Pension Plan disability and updating the existing standards for general applicants and those who submit reconsideration requests.
The changes recognize the urgency in processing applications and providing decisions faster to Canadians applying for the benefits, according to a press release by the Canadian government.
“All Canadians, including those with severe and prolonged disabilities deserve to be treated fairly and with compassion,” said Jean-Yves Duclos, minister of families, children and social development.
The changes include:
- The addition of a service standard for applicants with terminal illness. Its goal is to make a decision within five business days of receiving a complete application and aims to meet this target 95 per cent of the time.
- The addition of a service standard for Canadians with grave medical conditions. Its goal is to make a decision within 30 calendar days of receiving a complete application and aims to meet this target 80 per cent of the time.
- An increase in the service standard for general applicants. Its goal is to make a decision within 120 days of receiving a complete application and it increased its target of meeting this goal from 75 to 80 per cent.
- An increase in the service standard for Canadians submitting a benefits reconsideration request. Its goal is to make a decision within 120 days of receiving a complete application and it increased its target of meeting this goal from 70 to 80 per cent.