How to apply for a pension in Canada
By: Paul Everson, TechRadareSource: TechRadars: April 14, 2019, 10:01:17The federal government has announced that the number of retirees who will receive the provincial and territorial government’s provincial pension system has been cut by up to 50 per cent.
The federal government says that the change will mean the provincial pension fund will be able to pay out only about $500 million per year, while the federal government will only pay out about $200 million.
The new pension system, known as the Ontario Pension Plan, will be the province’s version of the federal pension plan.
What is the Ontario pension plan?
The Ontario Pension Fund was created in 2000 by the Ontario Retirement Pension Plan Act and was intended to be a “gold standard” in the provinces pension plans.
This is a very basic and low-cost pension plan, and in theory it could be easily extended to other provinces if there was demand.
The Ontario pension fund, which is overseen by the Ministry of Labour, will only cover a certain number of workers.
It will be capped at $1,600 per year for a full-time worker and $1.25 per hour for part-time workers.
Ontario has a population of around 21.3 million.
Why is the change needed?
The change will help the province deal with the fallout from the massive Ontario Retirement Plan Crisis that took place in June 2018.
“It was a major shock to the financial markets when we saw that there were people who were not in the pension plan who had to take out loans,” Ontario Premier Kathleen Wynne told reporters at the time.
“And so now we have a situation where some of those people will be unable to continue to live in the province.”
The province also has an unfunded pension liability of $4.3 billion.
The federal and provincial governments are paying out the Ontario and federal pensions as well as their supplemental pensions.
The amount of money paid out by the provincial government will be determined by a formula that includes the cost of living adjustments.
Are there other options?
There are a number of ways that provinces and territories can increase their retirement income without losing out on federal funding.
Ontario could pay for its own retirement income, such as through a new property tax or property transfer tax, but that would be a tough sell.
A similar proposal was made by Quebec in 2017, when the province introduced a plan called the Quebec Pension Plan.
The plan has been criticised by many people for being a very expensive solution.
Quebec has also announced that it will be phasing out the Canadian Pension Plan over the next few years, but the province is only paying out about 75 per cent of the current cost of the pension.
Other provinces are also looking to improve their retirement systems, such the New Brunswick and Nova Scotia governments.
New Brunswick is paying out $3.3 trillion in pensions, while Nova Scotia is also paying out some $4 trillion.
Can I still claim the Ontario provincial pension if I die?
You will need to wait until you reach age 75 before you can claim the provincial or territorial pension.
Ontario’s pension plan does not pay out until age 75.
The provincial pension is also only paid out at age 75, and once you reach that age you can no longer claim the pension for a period of time.
If you do reach age 65, you can still claim your provincial pension through a provincial disability pension plan called a Disability Benefit Plan.
This plan covers up to $100,000 per year in provincial benefits for people with disabilities.
You can apply to this plan by filling out the form on the Disability Benefit Plans website, or you can apply online through the Ontario Department of Labour.
I want to know how much I will be paying into my provincial pension when I die.
What are my options?
You may be able just to wait a little longer to claim the province pension.
The Pension Benefit Guarantee Act requires that every province and territory start paying out pensions to people who are aged 75 and over by the date they reach age 100.
The province must also pay the Ontario province’s entire pension system over a five-year period.