Hi David,
One of my colleagues at work has referred me your name for consultation
regarding US/Canada retirement benefits & OAS in Canada.
I became Canadian resident in Apr. 73 & have worked from May 74 to Dec.
97.
Then moved to US in Dec. 97 & became Canadian non-resident in Dec. 98.
Currently I am a Canadian Citizen & a US resident.
Within next few years, I am planning to retire once I satisfy the 40
points
requirement in the US for Social Security benefits. When the time comes,
I would like to have a personal meeting with you & discuss the strategy.
In the meantime, I would like to know if there are any residency
requirements
which I need to satisfy for both, Canada & US so that I can qualify for
maximum
OAS & CPP benefits in Canada and the Social Security benefits in US.
Please let me know about your Consultation charges i.e. per visit/per hr
etc.
Please also send me your contact Phone #.
Thanks,
=====================================
david ingram replies:
To collect the maximum CPP, you have to have worked in Canada at maximum
rates for 40 years by age 70.
To collect the maximum OAS, you have to have "lived - not worked" in Canada
for 40 years after turning 18.
I charge a minimum of $400 / hour Canadian for phone or personal
consultations. As a rule, if one calls back for a couple of minutes at
another time because of something that was not clear from the original, I do
not charge for the 2 or 3 minute call.
If you do not qualify for the full amounts, they will be pro-rated by the
number of years you have worked or been here.
The following is a corrected answer to a question from last January. It
might give you some other ideas
The original Q & A is at the bottom of the email.
----- Original Message -----
From: centapede at lists.centa.com
To: CENTAPEDE
Sent: Thursday, January 13, 2005 2:20 AM
Subject: 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 Snyder
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-----
From: Nelson, Andrew G. [mailto:agnelson at cal.ameren.com]
Sent: Wednesday, January 12, 2005 8:51 AM
To: taxman at centa.com
Subject: RE: 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 Snyder
Sure do.
http://www.ssa.gov/international/Agreement_Pamphlets/canada.html
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:
http://www.sdc.gc.ca/en/isp/pub/ibfa/usa-i.shtml
http://www.sdc.gc.ca/en/isp/ibfa/countries/agreements/usa-a.shtml
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]
-----Original Message-----
From: David Ingram [mailto:taxman at centa.com]
Sent: Wednesday, January 12, 2005 10:26 AM
To: Nelson, Andrew G.
Subject: RE: 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
Andrew - are you sure of this?
I don't work with OAS, CPP and SS much but I know that a couple of clients
have had their OAS cancelled and would have qualified under your rules.
I have just taken another look and do not see it easily.
Do you have an article or reference I can read.
david
-----Original Message-----
From: Nelson, Andrew G. [mailto:agnelson at cal.ameren.com]
Sent: Wednesday, January 12, 2005 6:35 AM
To: taxman at centa.com; centapede at lists.centa.com
Subject: RE: 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
David,
The totalization agreement between US and Canada allows quarters earned in
US to count towards the 20 year requirement to be able to collect OAS
outside Canada.
So in this example, if one contributes 28 quarters to SS, they will be
entitled to collect 13/40ths of normal OAS, paid to them forever, outside
Canada.
-----Original Message-----
From: centapede-bounces at lists.centa.com
[mailto:centapede-bounces at lists.centa.com] On Behalf Of
centapede at lists.centa.com
Sent: Wednesday, January 12, 2005 2:02 AM
To: CENTAPEDE
Cc: Webmaster at Jurock. Com
Subject: 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 Snyder's
To: taxman at centa.com
Subject: I have a few questions
David,
I have a few questions I would like to ask you.
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.
Thanks,
===============================
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.
hopAnswers to this and other similar questions can be obtained free on Air
every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred
Snyder of Dundee Wealth Management and I, David Ingram will be hosting an
INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the
Lower Mainland will be able to listen on the internet at www.600AM.com
Local calls are taken at (604) 280-0600 and Long Distance calls are taken at
1( 866) 778-0600 I do not know how far the LD line
reaches.=========================================This from "ask an income
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