Canadian Pension

ruib77 · Post by **ruib77** » Tue Jul 24, 2012 10:24 am

I have been working in Canada for 8 years. Although I'm planning to move to the US now, I want to come back to Canada after I retire. Can I keep my Cdn residency for the next two years while live and work in the US? In that case, I will be paying a little extra taxes for the next two years, but I will end up being eligible for Cdn pension. Does it make sense? Any pros and cons to this?

nelsona · Post by **nelsona** » Tue Jul 24, 2012 1:21 pm

You are already eligible for Cdn pension, so no, your idea doesn't make sense.

When you live and work in US, you are considred Cdn non-resident by treaty, having left canada when you begin working.

To remain Cdn tax resident while working in US, you would need to commute back to canada to your home daily/weekly.

ruib77 · Post by **ruib77** » Tue Jul 24, 2012 3:39 pm

Can you please explain what makes someone eligible for Cdn pension? I thought I have to work in Canada for at least 10 years to be eligible.

nelsona · Post by **nelsona** » Tue Jul 24, 2012 5:27 pm

You are eligible for CPP based on even 1 year of contributions.

It is US social security that requires a history of 10 year in US or canada.

ruib77 · Post by **ruib77** » Tue Jul 24, 2012 5:41 pm

Thanks. Could it be 8 years in Canada + 2 years in U.S.A for the social security eligibility?

nelsona · Post by **nelsona** » Tue Jul 24, 2012 5:46 pm

Yes. But it must be 8 years of WORK in canada, not merely presence.

So, again, your plan to keep Cdn residence while working in US has no benefit.