Pension and Benefit Changes by the New Prime Minister in Canada: You Should Know. The new prime minister of Canada, Mark Carney, recently made a lot of changes in the laws, benefits, and rules of Canada. The leadership of Justin Trudeau ended and Mark Carney was elected as the new Prime Minister. He made certain changes in the pension and benefits for Canadian citizens. To know more about the topic ‘Pension and Benefit Changes by the New Prime Minister in Canada’, please keep reading the article.
Pension and Benefit Changes by the New Prime Minister in Canada
The newly elected Prime Minister, Mark Carney, made certain changes in the pension and benefit programs. The new benefits for part-time students whose parents are disabled or deceased and contribution to the Canada Pension Plan (CPP). As of January 1, 2025, eligible part-time students aged 18-24 will receive 50 percent of the amount paid by the CPP to the full-time students. For 2025, this is a monthly flat rate of $150.89 for part-time students who qualify for the benefit. Students will need to show a minimum school attendance limit to qualify for the benefit.
CPP children’s benefits are there to provide monetary help to dependent children under the age of 18 that would normally be provided by their disabled or dead parent. For children aged 18 to 24, these benefits help cover some of the expense of their education. It is anticipated that this new benefit will straight away help 6,712 beneficiaries in 2025.
The Minister of Seniors Joanne Thompson said, “The rising costs of living are affecting us all. No child should have to choose between caring for their parents and going to school. By regularly evaluating the impact of the CPP on Canadians, we are taking the needs of students seriously and providing them with the tools they need to have a secure future.”
The Canada Pension Plan (CPP) death benefit is a one-time payment, payable to the estate or other eligible individuals, on behalf of a deceased CPP contributor. It was effective on January 1st, 2025. The amount of the death benefit for eligible CPP, or CPP and QPP, contributors includes a basic amount of $2,500 and a possible top-up of $2,500. This is the maximum benefit that can be received by the eligible individuals. These amounts can be less if a social security agreement is required to meet eligibility.
The Canada Pension Plan (CPP) children’s benefits offer monthly payments to the dependent children of disabled or deceased CPP contributors. The monthly children’s benefit is based on a flat rate that is adjusted annually. Children aged 18 to 25 and in full-time attendance at a reputable school or university received the flat rate of $301.77 (2025). Children aged 18 to 25 and in part-time attendance at a recognized school or university get half of the flat rate, which is $150.89.
The new Prime Minister also made changes in the amount of Survivor’s Pension. The CPP Survivor Benefit is a monetary support created to help the spouse or common-in-law partner of a deceased CPP member. This benefit aims to provide financial stability during difficult times by providing a monthly pension based on the decreased CPP contributor’s contribution within CPP. In 2025, the maximum survivor pension for individuals aged 65 and older is 60% of the deceased retirement pension, which translates to a maximum of $818.76 per month. In contrast, for seniors under the age of 65, the amount is 37.5% of the decreased retirement pension plus a flat rate portion.
The new changes include a pension boost in Canada for March 2025. In this, the elegible citizens of Canada will continue to get Old Age Security (OAS) and Canada Pension Plan (CPP) benefits, with CPP payments raising by 2.7%. OAS payments remain unchanged for this quarter, but they will be reviewed again in April 2025 based on inflation.
For the January to March 2025 quarter, the payments will be:
- Ages 65 to 74: Maximum OAS payment remains $727.67 per month
- Ages 75 and over: Maximum OAS payment is $800.44 per month