Indeed, the Canada Revenue Agency (CRA) is prominently recognized as one of its key stakeholders in the administration of a number of benefits programs from which Canadians derive value. Among the top programs sizzling in the public’s interest at the moment has been pension payments, especially with regard to that $3,900 sum. It would thus be essential to understand the specifics of eligibility, including expected payment dates if you are wondering whether you will get this amount.
What is the $3900 from CRA Pension?
Primarily, the amount refers to benefits derived from the Canada Pension Plan (CPP), or the Old Age Security (OAS), the two most well-known forms of financial assistance offered to seniors throughout Canada. In brief, the CPP pension is largely based on contributions made to the plan during working years, while OAS is essentially just a government pension that is paid to most Canadian seniors aged 65 and older.
That said, while up to $3,900 represents part of that sum, not all individuals will necessarily receive anything close to that amount. Payment will vary according to earnings, work history, and the specific pension program in question.
Eligible Amount for $3,900 Pension
To qualify for the pension from CRA, certain additional criteria need to be satisfied, such as:1. Canada Pension Plan (CPP);
- Age: You must be at least 60 years to apply for a CPP pension, though you may put off applying until age 70 to obtain a higher monthly payment.
- Contributions: According to the requirements, you have made sufficient contributions to the CPP through your working years.
- Work History: The amount you receive will depend on your average income for the duration of your working years. If you were self-employed, you would have made similar contributions as employed individuals.
Old Age Security (OAS):
Eligibility: The Old Age Security pension is available to Canadians aged 65 years and over. It requires them to have legally resided in Canada for at least 10 years after the age of 18.
Residency: To be eligible for OAS, you would have had to live in Canada for a minimum number of years. The amount might also change depending on the amount of years you spend living in Canada after your 18th birthday.
Guaranteed Income Supplement (GIS):
It delivers extra benefits for seniors who qualify for OAS and require some additional benefits. If you’re entitled to the OAS, the GIS will increase your payments.
When and Where Does the $3,900 Pension Get Paid?
The CRA has a schedule for pension payments within a year for all the pensioners, and the amount may differ. Since CPP or OAS pays every month, then the amount could just be a total of several months making up the $3,900; however, it is the norm that these amounts would be paid out on the last business day of the month in December. The common schedules for pension payments are:
CPP and OAS Payments: The payments of the funds on which a pension beneficiary is entitled are finalized on the third last business day of every month. For instance, they are expected to be issued usually on the last business day of December, which shall fall anytime between the 27th and 31st day of the month. However, in the event of any holiday falling on that date, the payment would take place on the preceding business day.
GIS Payments: If you are also receiving GIS, those payments are usually made at the same time as your OAS pension on those dates as well.
Also Read: Expected CPP Eligibility And Payment Changes for 2025: What You Need to Know
