The CSS Pension Plan is pleased to continue the tradition of providing the December monthly pension payments prior to the holiday season.
Pensioners whose pension payment is deposited directly into a credit union or bank account: Your pension payment will be deposited into your account on December 18 instead of the usual 26th of the month.
Pensioners receiving monthly cheques by mail: Your cheque will be mailed from the Pension Plan's office on December 17.
Income tax changes effective January 1, 2021 may mean that the after-tax amount of your monthly pension or Variable Benefit (VB) payments you receive in 2021 could be different than the amount you received in 2020.
If you are aged 65 or older and your total net income in 2021 is less than the federal and provincial base amounts, you can claim the full Age Amount when calculating your federal and provincial income tax payable for 2021. However, if you are 65 or older and your total net income exceeds the base amount but is less than the maximum amount for 2021, your Age Amount is reduced by 15% of your net income in excess of the base amount. If you are 65 or older your total net income exceeds the maximum amount for 2021, you will not be eligible for any of the Age Amount.
If you are turning 65 in 2021, the CSS Pension Plan will be sending you federal and provincial Personal Tax Credits Return (TD1) forms and applicable worksheets early in 2021. Once you receive the TD1 forms you should complete and return them, as you may be eligible for all or part of the federal and provincial Age Amounts. The applicable worksheets will help you calculate how much of the Age Amount you are eligible for if you expect your 2021 total net income to exceed the base amount.
If you are already 65 or older you should keep the above in mind if you expect your 2021 total net income to exceed the base amount. If you fall into this category, you can arrange to have extra income tax withheld from your monthly pension or VB payment.
In addition to the CSS Pension Plan's office, the 2021 TD1 forms and applicable worksheets will be available on the Canada Revenue Agency (CRA) website, or by calling CRA at 1-800-959-5525, but not until late 2020 or early 2021.
The 2020 T4A slips will be mailed directly to retirees by mid-February 2021. Please watch your mail and retain this slip when it arrives, as it will be required when filing your 2020 income tax return. CRA regulations state that a T4A slip must only be issued when total payments for the year are more than $500.
If your total payments from the CSS Pension Plan for 2019 are less than $500, you will not receive a T4A. However, you still must declare the total payments received in 2020 on your income tax return.
If you move, please be sure to advise the CSS Pension Plan of your new mailing address.
Regardless of your age, if you are receiving monthly pension payments from the CSS Pension Plan, you qualify for the Pension Income Amount (i.e., when calculating your tax credits) on your income tax return. These payments also qualify for the Pension Income Splitting provision, also regardless of your age.
If you are receiving VB payments, they do not qualify for the Pension Income Amount or the Pension Income Splitting provision until you are age 65.
 At the time of posting, the 2021 base amount and maximum amounts were not known, nor were the 2021 Age Amounts. However, for 2020 the federal base amount and maximum amount are $38,508 and $89,422 respectively (the various provincial thresholds are comparable). The 2020 Federal Age Amount is $7,637 (the various provincial Age Amounts are comparable).
 Many of the provinces have also introduced Pension Income Splitting when calculating provincial income taxes payable.