Canadian asks about CPP & OAS

First, Pension I read that it's possible to top up your pension years if your short
so it's possible to get full pension.

I lived in Canada for 13 years from age 18.
is it worth while to pay up my cpp for 7 years
so I can get full pension 65 ?
I now live in the us with over 10 years of pension earnings
so I will get full pension here. Would I be paid two pensions
by paying up my cpp ?

Second, I believe I may own rev can some money from 12 yrs
ago do I need to worry about it ? I think I read
about rev can having some amnesty programme.

I don't think I will ever live in Canada again as
a tax resident. I may visit for a few months.
In fact I'm considering leaving here (usa) for some cheap
warm year round location at retirement time.


Original Answer
david ingram replies:
If you are not living in Canada or working out of the country for a Canadian Company, there is no way to top up your CPP or OAS.
If you you have not lived in Canada for 20 years after turning 18, you can NOT collect your OAS out of the country
You WILL get a small CPP pension based upon your 13 years in Canada no matter where you live.
You WILL get a small US Social Security Pension based upon your contributions no matter where you live.
Rev Canada will not have forgiven your debt. Just today, I received a notice for an 88 year old man on old age pension. The CRA (old Revenue Canada) is trying to collect $1,800 for 1987. That is a 17 year old debt and he did not know that he owed them anything. However, we filed a 2003 return to get his a tax credit and the CRA grabbed the tax credit and sent him a bill.
The following is a correction to my answer. Quite frankly, I did not recognize that you could use time paid into US Social Security to qualify for the 20 year provision to collect Canadian OAS in the US.

And Frank Norman also wrote to make sure that my audience recognized that although I was correct about using CPP_ credits to qualify for US Social Security, it is only the credits that qualify you for the pension based upon the time you actually paid into US social security and that the "MONEY" paid into the CPP does not have any affect on the amount of the US Social Security.

Thank you Frank and Andrew.

Anyone in this position can read the whole agreement that I referred to in Andrews reference below. It is the same agreement but i just did not recognize the actual implementation. I ALWAYS give credit when corrected.

david ingram

-----Original Message-----

Sent: Wednesday, January 12, 2005 8:51 AM
Subject: RE: [CEN-TAPEDE] Canadian asks about CPP & OAS - a cross-border International real estate rental mutual funds immigration non-resident income tax expert - David Ingram 's CEN-TA Services in North Vancouver BC Canada on It's Your Money CKBD AM600 Fred Snyd

Sure do.

The relevant section:

IV.A.2. Benefits from Canada Canada provides retirement, survivors and disability benefits through two separate programs.

Old-Age Security (OAS) Program

To get OAS benefits, you must be 65 or older and must have been a resident of Canada for at least 10 years after age 18 (or 20 years after age 18 to have benefits paid outside Canada).

Under the agreement, Canada will consider your U.S. Social Security credits earned after 1951 and after age 18, along with periods of residence in Canada after 1951 and after age 18, to meet the OAS residence requirements. However, to be eligible to have your U.S. credits counted, you must have resided in Canada for at least one year after 1951 and after age 18.

In other words, for benefits to be paid outside Canada for longer than 6 months, one needs 20 years of residency. The agreement states that US SS quarters can be used to make up that residency requirement.

I'm helping a woman right now to get her OAS who has lived 40 years in US, but had 10 years after age 18 and after 1951. It will only be a quarter (10/40ths) of what you will get, but its free money.

Similar wording is found in the Cdn website:
Article IX 3 a) an Old Age Security pension shall be paid to a person who is outside Canada only if that person's periods of residence, totalized as provided in Article VIII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for entitlement to the payment of a pension outside Canada; and ... [bold mine showing that this residency period can be totalized]


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