How to trace a pension?

Should I contribute to the Canadian Pension Plan (CPP) or the Japanese National Pension System?

• Hi everyone! I'm a Canadian citizen and I've been living (and working) in Japan for over 2 years now... I was wondering about contributing into the CPP (Canadian Pension Plan). I read a lot about the pros and cons of both pension systems and it seems that the Japanese National Pension is not the way to go... that goes the same with the Japanese Health Insurance; but don't worry, I got private health insurance. As for applying for the CPP while living in Japan, will they require me to pay Canadian income taxes as well? Canada needs to know my income to calculate my CPP premiums right? So if I have to pay Canadian income taxes, wouldn't I be paying double taxes (Japanese and Canadian)? I also know of the accord that is now in effect between Japan and Canada that there is an agreement between the two countries about social security... but really, what does that mean? If I paid into the Japanese National Pension, can I transfer 100% of my contributions and my contribution years towards my CPP if and/or when I move back to Canada? Or does it mean something else? I'm getting married (to a Japanese) this summer, but my fiance and I are not sure if when we will move back to Canada... but we probably will eventually. Would this effect choosing between the Canadian or Japanese pension system? Unfortunately, as the reality of it is getting more obvious, both Canada's and Japan's pension system is on the verge of collapsing and I will probably not see a single cent or yen... but both systems do offer disability and death benefits that seem somewhat beneficial... like an insurance of sorts. Your thoughts and advice would be greatly appreciated! Thanks in advanced for your time! Cheers, Chris.

• Answer:

  My normal specialty is income tax, not CPP. But I've found a couple of links that might be helpful. This first link is a news release dated February, 2006 that gives general information on the agreement between Japan and Canada. What it basically says is that if you have contributed to one country's government pension plan, the contribution years can be used to accumulate benefits when you apply for the other plan. http://www.hrsdc.gc.ca/eng/cs/comm/sd/news/2006/060215.shtml This next link give a lot of the same information, but says that the agreement is now in place. http://www.hrsdc.gc.ca/eng/isp/pub/ibfa/japan-i.shtml If I'm reading the information properly, there is the possibility (however remote) that you might qualify for both the Japanese insurance plan, and the CPP retirement benefits at the same time. Chances are slim, however, especially since the Japanese plan requires at least 25 years of contributions to the plan before you qualify. If you do happen to qualify for both, the agreement is null and the two benefits are calculated on their own merits. The CPP requires only one valid contribution, however the more contributing years you have, the greater the benefit you'll be able to draw. Your contributions to the japanese plan can count in the calculation of the canadian benefit if you don't qualify for a japanese benefit because of the lack of contribution years. You unfortunately don't have the option of contributing directly to the CPP. In order to contribute to CPP, you must have been a resident of Canada during the year. http://www.cra-arc.gc.ca/E/pbg/tf/cpt20/README.html Hope that helps you out. Just as an aside... I've been keeping track of the CPP as part of my retirement planning. The CPP investment board right now states that the plan has a surplus of about 110 billion dollars, and the surplus is growing. The current contributions to the plan are not yet exceeding the benefits paid from the plan. The fund is in good shape to deliver benefits for at least the next 75 years.