Whether to collect CPP or SS??

[butlertl]

I just turned 62 and have worked in Canada for 38 years and then became a US citizen (through marriage) and worked in USA for 4.5 years. Now back in Canada and have worked for 9 months. I can live in either country. What would pay more money: applying for CPP and having them consider US years of work or applying for SS and having them consider Canadian years of work. I will also qualify for spousal SS through my husbands US work record as he is retiring in next few months at 65.

[JGCA]

Since you have only 4.5 yrs in the US you will receive more if you apply in Canada and ask for the US yrs to be factored in if possible.

[nelsona]

Incorrect.

This is a popular misconception that CPP or SS "factors in" what you earned in other country. Each is calculated competely separately based on the contributions made in that country. Only the actual eligibility for SS is help by time worked in Canada (not the amount).

The answer is that you will collect both:

CPP becuase you worked in Canada
SS becuase you worked 4.5 years in US plus at least 5.5 years in Canada.

Your CPP will be based on the years your worked in Canada. Period.
Your SS will be calculated based on your work in US. Period. of couse, your spousal SS will probably be more that this.

Becuase your SS will be small, neither SS nor CPP will affect each other.

By the way you will get full OAS as well.

[butlertl]

I have applied for my CPP online through the Service Canada web site. If I am going to collect SS for my 4.5 years work in the USA do I also have to go through SS in the US and apply for SS separately. I am sure the answer is yes but just checking.

[nelsona]

Yes. You will need to contact SSA, and advise them that you are requesting SS based on the Cdn/US Totalization agreement. They will then start the process of collecting the required info from you/CPP to prove that you are qualified (ie. at least 16 years of CPP contributions). So you will want to have a recent CPP/QPP annual report handy.

[Alabaman]

hi nelsona what do you mean by They will then start the process of collecting the required info from you/CPP to prove that you are qualified (ie. at least 16 years of CPP contributions)?

In my case I have 6 years of contributing to SS and 3 years of contributing to CPP.

I am still in my 30s though.

[nelsona]

Oops.

I meant to say SIX years. The SS years and CPP year must add up to 10, in order to get SS.

in your case, you need either 1 more year of SS or 1 more year of CPP.