The Canada Pension Plan was first established in 1965 by the Liberal Government of Prime Minister Lester B. Pearson. All employed Canadians who are 18 years of age and over contribute a prescribed portion of their earnings into the nationally administered pension plan.
The CPP also provides disability pensions to eligible workers who become disabled in a severe and prolonged fashion, and survivor benefits to survivors of workers who die before they begin receiving retirement benefits.
As of November 2016, the prescribed employee contribution rate was 4.95% of a salaried worker's gross employment income between $3,500 and $51,100, up to a maximum contribution of $2,356.20 with the employer matching the employee contribution at 4.95%. Self-employed workers must pay 9.9% of pensionable income.
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