CPP Pension Sharing — Reallocate Retirement Pension Between Spouses for Tax Savings
What Is It?
Service Canada allows spouses and common-law partners to share CPP retirement pensions. This is not the same as CRA’s pension income splitting election on the tax return.
What Most People Don’t Know
- This can create tax savings.
- It is a Service Canada pension arrangement, not just a tax-filing election.
- CPP post-retirement benefits are not eligible for pension sharing.
- Pension sharing cannot be backdated.
Frequently Asked Questions
Is this the same as pension income splitting on a tax return?
A: No. Service Canada explicitly says CPP pension sharing is different from CRA pension income splitting.
Can it be backdated?
A: No. Service Canada says a pension-sharing arrangement cannot be backdated.