Social Security vs Canada Pension Plan

I am an immigrant who has been working in Canada and the USA for less than 10 years in each country. I turn 65 next year and consider collecting pension benefits. Thanks to the US-Canada agreement, my pesional credits will add up to more than 10 years and I qualify for some pension. I even have a choice between collecting the SS and CPP benefits (but not both).

Questions:

1. How does SS takes into account my contributions to CPP?
2. What benefits of the set of two {SS, CPP} would be higher?

To answer the second question, assume that I have been working in each country six years earning $80K per year.

You have some misconceptions:

1. You will collect both. CPP will be based strictly on your CPP contributions. SS will be based on your SS contributions, but since you did not work 10 years in US, you will need to show SS that you worked the required time in US and canada. CPP does not get added to SS, only the time you worked in canada is used to qualify you for SS.

2. There is no "choice" to make. You must file for CPP and you must file for SS to get both.

Because you only worked 12 years in North america, do not expect very much from either system. Call them both and they will do a calc for you.

1. You will collect both.

I disagree because I have been working the required minimum 10 years neither in Canada nor in the USA. Still according to the U.S.-Canada pension agreement I do qualify in each of these countries but not in both simultaneously.

2. There is no "choice" to make.

I disagree. It looks like I do have a choice because I cannot collect both pensions.

Still my main question remains: How country A will be taking into account my earnings and pension contributions made in country B?

Um, you clearly don't understand the system.

You qualify for CCP after one year of work in canada. Period. You will get CPP based on your Cdn work history by itself.

You qualify for SS, by the aggreement, as long as you work 1.5 years in US, and a TOTAL of 10 years in US and canada. You said you have worked 6 years in each, so you qualify for SS.

The US (SSA) wil contact canada, when you apply for SS, and get your CPP history. They will not use any contributions to add to your SS, but will merely credit you with enough credits to reach 40, and allow you to collect SS based solely on yourcontributions in US to SS.


And, yes, you will collect from both, like 100,000 others in your situation.

If you ask a question, please accept expert answers. I have personally assisted people here in US to get CPP, OAS and SS.

Changing the color of your question makes no difference.

I'm a RN, Just last week i was having a laugh with 1 of my pts! Once he found out I was CDN ( I work /live in USA), he thanked me for the $67 each month he got from the Cdn gov't, because years and years ago he had worked in Ontario for just over a year! He stated he never even expected that. And he collects his USA Social security too!!

Um, you clearly don't understand the system.

Now I understand and I am sorry for my previous post.
Thank you.

My husband is american and has been living in Canada and paying into CPP since '86. We visited a SS office back in the U.S. recently and they suggest that if he starts collecting SS prior to him reaching 66 then he will not only get a reduced amount due to the early withdrawal, but he will also get penalized because he is still working in canada. There is a maximum he can make ($12K approx) per year. They are also suggesting that CPP will be calculated as income and will reduce his CPP.

Can someone clarify how canadian income will affect SS? (Before and after 66)

How will CPP affect SS?

thanks
diane

ANY wages earned while collecting SS, regardless of counry, will impact SS.

Collection of CPP will also impact SS under the Windfall elimination provision.

CPP is never affected by any other income.
However, if you live in canada, OAS can be clawed back if you make over ~60K income regardless of source.

I anwer more of these type questions at site in my signature.

I contributed to CPP for about 7 years, worked in US and contributed to SSS for about 11 years and then worked again in Canada and resumed contributing to CPP. I'm turning 62 next year and I intend to apply for SSS retirement benefits. But I plan to continue working in Canada until the full retirement age of 65. My quesions are:
1. Will SSA approve my retirement even if I'm still working in Canada?
2. Will my CPP benefits upon retirement be affected by my SSS benefits?

good questions.
1. SSA will always approve you getting reduced SS once you are 62. However, they will only pay your monthly benefit up until you reach a certain amount of earned income, after which they cut your benefit for the rest of the year. The SSA requires that you report your earnings to them, and require that you contact them if you are planning to work outside the US. So, applying early and working, both reduce your SS drastically, on top of the reduction i will mention below...

2. CPP will never be reduced based on your SS. However, your SS will be reduced based on the fact that you get CPP. This is regardless of when you begin recieving SS or CPP. This is know as WEP: windfall elimination provision.

-- Fri Nov 19, 2010 3:40 pm --

Note that if some of your SS is reduced because of working too much, it will be "given back" to you when you reach full retirement age, by recalculating your monthly benefit and factoring in how much was taken away.

This factoring only takes into account SS lost because of work, not because of WEP.

-- Fri Nov 19, 2010 3:46 pm --

So, from now to 65, you will get SS reduced by early request, by the fact that you curently work, and by the fact that you only worked 11 years.

Once you hit 65, it will then be hit by WEP, due to getting CPP.

Then at 66 (your full retirement age for SS), it will be boosted back a little for what you lost while working.

I'm guessing your SS is going to be pretty small....