Further to the Totalization of CPP and Social Security credits when Returning to Canada early because of heart disease.


QUESTION:

Iwas born Dec 22/39 in Canada. I worked in Canada until Feb of 1997,
moved to the US and presently work with a TN1 visa.

I developed heart disease and have had two attacks since '01

I would like to return to Canada and retire there near my family before
it's too late.

I understand I have to work in the US for 40 quarters to get their
Social Security, I only have 27.

I assume I cannot collect from both, but what is the result of applying
the US/Canada treaty to my case?? Do I apply it to the Canadian or US?


david ingram replies:

You will want to apply Canadian Earnings to the US Social Security to
make up your time if they will allow it. With 27 quarters, they likely
will and it will be to your advantage to get eh higher US money for two
reasons.

One it is a higher pension on a pro rata basis. Two - when received in
Canada, only 85% is taxable.

You will then receive a smaller CPP which will be more than made up by
what you receive from the US Social Security.

Your biggest problem is medical in the US. If you cannot see yourself
continuing to work in the US, there is no sense but if you can get
another 5 quarters in (up to 32) you can then buy your US social
security medical and if you keep on working and putting in more
quarters, you will get to the point where the full medical is free and
you will have your 40 quarters. Remember, it is only 3 1/3 more years
and you only need to earn $4,000 a year to qualify for four quarters a
year.

Perhaps, you could continue on a part-time basis for instance. I do
notice that none of your company's three locations appear to be near the
border but if you are filling a needed function, perhaps you could
telecommute and live in Blaine, Washington, Pembina, North Dakota,
Niagara Falls, or Calais, Maine (all US border towns), fill up your
Social Security and be close enough to your Canadian Family to get the
best of both.

**********************************
Thanks to Andrew for adding to this subject. - the original question and
answer are at the bottom. david

David, any totalization request made to SSA to include CPP contributions
will NOT affect one's CPP, which is fixed SOLELY on the basis of CPP
contributions.

One's SS will of course be smaller if totalization is used, than one who
worked a full 40 quarters, and one's SS will be reduced marginally by
one collecting CPP as well as SS (by Pension Windfall provisions of
SS). But neither collecting SS, nor using totalization will in ANY WAY
affect CPP payout.

One will indeed collect from BOTH SS and CPP when totalization is used.

Remember too that the poster will be eligible for a portion of his OAS
as well.

AGN

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