Can I Collect Canada Pension if I Live in the USA?

According to Service Canada, you can continue receiving your Canada Pension Plan (CPP) payments even if you move to the United States. Eligibility for the contributory CPP is based on your contributions while working in Canada, not your country of residence. However, collecting Canada pension if I live in the USA involves different rules for the residency-based Old Age Security (OAS) and important tax considerations under the Canada-U.S. tax treaty.

Quick Summary

This guide explains the eligibility requirements for receiving the Canada Pension Plan (CPP) and Old Age Security (OAS) in the United States, detailing the application process for non-residents and outlining the tax implications under the Canada-U.S. tax treaty.

Key Points

• CPP is Portable: Eligibility for the Canada Pension Plan (CPP) is based on your contributions, meaning you can continue to collect it while living in the USA, provided you have made at least one contribution.

• OAS is Residency-Based: Eligibility for Old Age Security (OAS) requires at least 20 years of Canadian residency after age 18 to continue payments while residing outside Canada.

• Apply via Paper Form: Non-residents applying from the USA must submit a paper application (ISP-1000 for CPP), as the online application portal is not available for those living outside the country.

• Taxable in the USA: Both CPP and OAS benefits are taxable in the U.S., but under the Canada-U.S. tax treaty, the U.S. generally claims taxing rights, and CPP receives favorable tax treatment similar to U.S. Social Security.

• Coordinating Benefits: The Canada-U.S. Social Security Agreement allows you to combine work credits from both countries to help qualify for benefits if you don't have enough credits in one country alone.

• No GIS for Non-Residents: The Guaranteed Income Supplement (GIS) and Allowance benefits are not payable to individuals living outside Canada for more than six months.

• Direct Deposit Available: You can arrange for your Canadian pension benefits to be directly deposited into a U.S. bank account in USD.

Eligibility for CPP vs. OAS While Residing in the USA

For Canadians living in the USA, determining eligibility for the Canada Pension Plan (CPP) and Old Age Security (OAS) requires understanding the different rules governing each program. The key difference lies in whether the benefit is based on contributions or residency.

Canada Pension Plan (CPP) Eligibility

The CPP is a contributory program, meaning your eligibility is based on the contributions you made during your working years in Canada. To receive CPP while living in the USA, you must have made at least one valid contribution to the CPP and be at least 60 years old. You can apply from the USA using a paper application and keep your contact and banking information updated with Service Canada. CPP payments can be deposited directly into a U.S. bank account in U.S. dollars.

Old Age Security (OAS) Eligibility

The OAS pension is a non-contributory benefit based primarily on your years of residence in Canada. The rules are much stricter for non-residents. To receive OAS while living in the USA, you must be 65 years or older, have been a Canadian citizen or legal resident on the day before you left Canada, and have resided in Canada for at least 20 years after turning 18. If you do not meet the 20-year residency rule, your OAS payments will stop if you are outside Canada for more than six consecutive months. The Guaranteed Income Supplement (GIS) is not payable to individuals living outside Canada.

Comparison: Collecting CPP vs. OAS in the USA

Understanding the distinct requirements for each benefit is crucial for retirement planning as a Canadian expat. The following table highlights the key differences between collecting CPP and OAS while living in the USA.

Feature	Canada Pension Plan (CPP)	Old Age Security (OAS)
Basis	Based on contributions made.	Based on Canadian residency.
Eligibility for US Residents	Full eligibility, provided you meet contribution requirements.	Requires at least 20 years of Canadian residency after age 18.
Minimum Eligibility	At least one valid contribution.	20 years of residency after age 18 to receive it outside Canada.
Maximum Benefit	Based on average earnings and years of contribution.	Based on 40 years of residency after age 18.
Taxation	Taxable in the U.S.; 85% is subject to federal tax, similar to U.S. Social Security.	Taxable in the U.S.; a non-resident withholding tax may apply, but is typically waived under the tax treaty for U.S. residents.
Supplemental Benefits	Not applicable; amount is based on contributions.	Supplemental benefits like GIS are not available to non-residents.

The Canada-U.S. Social Security Agreement and Tax Treaty

The bilateral Social Security Agreement between Canada and the United States helps coordinate the pension programs of both countries. The agreement prevents double social security taxation and may help you qualify for benefits if you combine work credits from both countries. The Canada-U.S. Tax Treaty clarifies that CPP and OAS benefits paid to a U.S. resident are generally taxable by the U.S., not Canada, provided the tax treaty benefits are claimed.

How to Apply for CPP and OAS from the USA

Applying for Canadian pensions from the U.S. requires a different procedure than applying from within Canada. Start early, gather required documents like your SIN and proof of age, and use a paper application (Form ISP-1000 for CPP). You can submit your application through a U.S. Social Security office. Direct deposit into a U.S. bank account is available. The Canada-U.S. Totalization Agreement allows combining work credits from both countries for eligibility.

Conclusion: Strategic Financial Planning for Expatriates

Collecting Canadian pension benefits while living in the USA is possible, but requires understanding the rules for CPP and OAS. CPP eligibility is portable and based on contributions, while OAS requires a minimum of 20 years of Canadian residency to be received outside Canada. Both are taxable in the U.S. and can be coordinated with U.S. Social Security under the bilateral agreement and tax treaty. Non-residents must use a paper application process. For specific tax advice, consult a cross-border tax professional. https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-international.html

Frequently Asked Questions

How do I apply for Canadian pension benefits from the USA?

To apply for Canadian pension benefits from the USA, you must submit a paper application (Form ISP-1000 for CPP) by mail to Service Canada. Alternatively, you can file the application through a U.S. Social Security office by completing the necessary forms (Form CDN-USA 1 for OAS/CPP).

Can I receive both Canadian and U.S. pension benefits?

Yes, you can receive both Canadian and U.S. pension benefits. The Canada-U.S. Social Security Agreement allows for the coordination of benefits between the two countries.

Is my Canadian pension taxed if I live in the USA?

Yes, your Canadian pension is generally taxable in the USA. Under the Canada-U.S. tax treaty, CPP and OAS are treated as U.S. Social Security benefits for U.S. tax purposes, and a portion is subject to federal income tax.

Does moving to the USA affect my Old Age Security (OAS) payments?

Yes, moving to the USA affects your OAS payments. To receive OAS outside of Canada, you must have lived in Canada for at least 20 years after turning 18. If you do not meet this requirement, your payments will stop after six months.

Will I lose my Guaranteed Income Supplement (GIS) if I move to the USA?

Yes, you will lose your Guaranteed Income Supplement (GIS) if you move to the USA. GIS is a residency-based benefit and is not payable to individuals who are outside Canada for more than six consecutive months.

Can I get my CPP payments directly deposited into a U.S. bank account?

Yes, you can receive your CPP payments via direct deposit into a U.S. bank account. You will need to provide your U.S. banking details to Service Canada.

How does the Canada-U.S. Social Security Agreement help me qualify for benefits?

The agreement can help you qualify for benefits by allowing you to combine your work or residency periods in both countries to meet minimum eligibility criteria. This is particularly useful if you have worked in both countries but have not contributed enough in one country alone.