became operational in 1951. It pays flat-rate benefits to all persons in Canada ‘aged 65 and Social Security Abroad over without regard to need and subject only to a residence requirement. The program is financed out of general revenue and does not involve a payroll tax. This universal benefit, initially set Caruda Pension Plan Amended* at $40 per month, has gradually been increased through cost-of-living adjustments to its present Legislative changes in the Canada Pension level of $123.42 per person *per month (April Plan (CPP) enacted by Parliament in November 1075). In 1067, an income-tested supplement, 1374 came into force January 1, 1975. These known as the guaranteed income supplement, was recent amendments include (1) a gradual increase added to the pension under the Old Age Security in tile earnings ceiling for social security con- Act for persons with little or no income beyond a tributions over the next several years to restore flat-rate benefit. For a single person or a married parity with the average wage in industry ; (2) a person whose spouse is not a pensioner, the sup- midcning of coverage through lowering of the plementation of income may be as much as $86.57 floor on the amount of earnings exempt from per month (April 1975). social security contributions; (3) the elimination The second tier is a national contributory of the earnings test for retired persons aged 65 earnings-related pension program known as the and over; and (4) the equalization of benefits CPP. This program, which came into effect in for widowers and widows with children. 1066, covers all employees and self-employed Like other countries, Canada is currently faced persons residing in Canada outside the Province with a serious inflation problem and has had to of Quebec. It is financed by compulsory contri- review the procedures through which social secu- butions from employees, employers, and self- rity benefits are adjusted, especially to insure that employed persons. Tax-deductible contributions old-age, disability, and survivor benefits keep are payable on that portion of an individual’s pace with the increasing cost-of-living. The latest annual earnings falling between the “year’s basic changes mark the second time within the past 2 exemption” and the ‘Lyear’s maximum pensionable years that the Government has raised the wage earnings” (or ceiling)-in 1975, between $700 and ceiling for contribution purposes. The amend- $7,400 a year, respectively. The lower and upper ments are also the first, extensive overhaul made limits are both subject to adjustment for changing by the Government in the country’s basic wage- price and wage levels. related social security program since its incep- The Plan incorporated certain transitional pro- tion in 1966.’ visions, including the lowering of the pensionable age from 70 to 65 in one-year stages between 1966 and 1070. (This change coincided with the BACKGROUND lowering of ages under the Old Age Security Act.) The Plan also provided for the payment The Canadian Government maintains a two- of proportionately reduced retirement benefits tier old-age insurance program composed of a during the first 10 years of the program. Thus flat-rate and an earnings-related component. The a person who is able to qualify for a pension basic coverage is provided by the flat-rate com- during the transitional period 106’7-75 receives a ponent under the Old Age Security Act, which benefit equal to 2.5 percent of his average adjusted earnings per year ,for every year or fraction * Prepared by Robert W. Weise, Jr., Office of Research there of credited after 1966. After 1975, the retire- and Statistics, International Staff. ment benefit payable from age 65 will equal the ’ For an earlier analysis of the CPP, see Daniel S Gerig full amount of 25 percent of the employee’s and Robert J. Myers, “Canada Pension Plan of 1965,” Social Security Bulletzn, November 1965. For a summary average pensionable earnings. Computation of the of the various Canadian social security programs, see 25-percent replacement is based on the total salary Socral Security in Canada, Department of Health and Wel- up to the ceiling (including the $700 exemption), fare, 1974 See also Canadian Employment Benefits and Pension G&de Reports, Commerce Clearing House, Inc. Benefits are also provided for the disabled and

34 SOCIAL SECURITY their dependent children-and for t,he contributor’s reason, a joint Federal-Provincial review was surviving spouse and dependent children, which started in the spring of 1973 to study the pro- are likewise subject to adjustment for changes posed changes in Canada’s social security laws in the cost-of-living index.* The maximum benefit through working groups whose recommendations payable to a single retired person in April 1975 were then referred to the appropriate Federal amounted to $125.90 per month. Until the recent and Provincial ministerial levels for further con- amendments, payment of the old-age benefit was sideration and legislative action.4 subject to a two-step retirement test, similar to One of the central issues raised during the re- that applied in the United States before 1973. view was the role of the CPP in providing an A separate Quebec Pension Plan (QPP), adequate level of income protection in the case closely patterned after the Canada Pension Plan, of retirement, disability, or death. According to also became effective in 1966. Some differences the Government White Paper, tsvo points stood exist with respect to benefits, but the two plans out: (1) Even though the maximum 25-percent are being gradually adjusted to maintain basic replacement of average adjusted pensionable earn- comparability. The QPP is separately adminis- ings becomes payable in 1976, it will be two or tered. Reciprocity exists between the two plans, three decades before the great majority of retired however, so that if an employee covered by the workers will be gett,ing full benefits under the CPP undertakes employment in Quebec his con- Plan ; and (2) in the meantime a growing num- tributions to the QPP will produce the same ber of people are becoming, dependent upon benefits as if they had been made under the CPP means-tested benefits.5 and vice versa. The CPP, as originally designed in 1966, was intended to provide an income-security program that, when combined with the flat-rate pension under the Old Age Security Act and any private FEDERAL-PROVINCIAL REVIEW pension arrangements or savings, would keep re- At the beginning of 1970 the rising concern tired people out of poverty. Since basic minimum with poverty in Canada, as in a number of other protection is already provided under the flat-rate countries in the late 1960’s, led the Federal universal program, the replacement rate under Government to undertake a major reexamination the CPP and the QPP was set, after the lo-year of its total social security program. The objective transitional period, at the modest level of 25 of the study was to find new methods for reducing percent of average previous earnings. It was poverty and dependence upon social assistance expected that as hhese programs matured, cover- and to improve the basic income protection of age under these plans would reduce the extent to insured persons within the framework of existing which people would depend on the guaranteed social insurance programs.3 The review covered income supplement and social assistance for in- the main areas of social security: The pensions come support. under the Old Age Security Act, the CPP, family In practice, however, the trend during the first allowances, unemployment benefits, and means- 8 years under both plans-particularly since tested benefits under the provisions for the guar- 1972-has been toward increased dependence upon anteed-income supplement. income supplementation. Between 1966 and 1974, In Canada, constitutional responsibility for the total number of persons aged 65 or older legislation on income security is shared jointly receiving the universal flat-rate benefit rose 68 by the Federal Parliament and the legislatures percent; during this period, those receiving the of the Provinces. Amendments to existing legis- guaranteed income supplement in addition to the lation in this field, therefore, require approval old-age pension more than doubled. At the same at both Federal and Provincial levels. For this time, statutory limitations imposed on the replace- ment of earnings during the plans transitional ‘Unlike the social security program of the United period made it necessary for persons retiring States, the Canada Pension Plan provides no additional retirement insurance benefit to the wife of a retired insured man. 4See, for example, Social Security Bulletin, February ‘See Government White Paper, Income Security for 1972, pages 3133 and 37. Canadians, Department of Health and Welfare, 1970. ‘Government White Paper, op. cit., page 21.

EULLETIN, AUGUST 1975 95 under these programs to seek income supplemen- I’ABLE L-Number of persons receiving benefits in Canada, by type, end of fiscal year, 1966-74 tation. Table 1 compares the number of persons - receiving income supplementation and the num- I- Retirement pension End of fiscal Old age ber of persons granted benefits under the CPP year (March)- secunty s CPP QPP and QPP during 1966-74. _- -- Currently, benefits paid out under the two 1966... ______(1) (9 1967-m ______605,240 2,969 wage-related plans account for only a small por- 1968 -______-_-. 10,423 1969-...... -..-.. 77% ii: 24,042 tion of the country’s total social security pay- 1970 ______s12:335 44.700 1971. ______ments to persons aged 65 and over. In December 1972...... -. fJF% Z*% !x~; 1973. ______---_ 1.04$467 3oe:113 s5:s94 1974, 459,000 persons were receiving Government 1974...... 1,076.425 ’ 358,942 ’ loo.014 wage-related retirement benefits-359,000 under - - 1 Full or partial ayments the CPP and 100,000 under the QPP. These 9 Program intro 8 wed in 1966 8 Data for December 1974 figures equaled less than one-fourth of the total Source Statistics Canada (Department of Industry, Trade, and Com- number of persons aged 65 and over who were merce), Department of Health and Welfare, and Quebec Pensfon Board receiving benefits under the universal Old Age benefit levels under the CPP. One of the first Security Act. At the same time, the average re- aspects of the Plan to be examined by the Federal- tirement benefit, although it increased each year, Provincial working group on income mainte- had reached only $44 per month in December nance, therefore, was the imposition of limita- 1974. This low growth was due, of course, to the tions on the automatic adjustment of the earnings provisions in the plans that provide for propor- ceiling and the benefits. tionately reduced retirement benefits during the Built into the CPP were provisions for keeping transitional period. the floor and ceiling of earnings and benefits in In terms of current retirement benefits for payment up to date. From the outset it was in- persons aged 65 and over, income-related pay- tended that the current earnings ceiling should be ments under the two plans as yet account for continually adjusted to improvements in wage only a small proportion of the country’s total and salary levels, while the amount of current social security package. During the fiscal year pensions was to be adjusted annually according 1973-74, retirement benefits paid under, these to an index based on prices. The measurement plans had reached only $160 pillion, or the used for the adjustment of pensions is the “pen- equivalent of approximately 5 percent of the sion index,” which is computed by averaging for benefits paid out under the old-age security and the year the monthly changes in the consumer guaranteed income supplement programs. ‘In the price index. Until 1974, however, such adjust- same period, payments under the Old Age Secu- ments were limited by law to a maximum of 2 rity Act totaled $3.03 billion, includitig $760 percent a year, largely because in 1965 when the million paid as guaranteed income supplements. legislation was enacted 2 percent was equivalent According to Canadian official sources the uni- to the long-term trend in price increases. (A versal program and supplemental benefits, fi- similar limitation was imhosed on the adjustment nanced from general revenue, account for more of flat-rate benefits under the Old Age Security than half the total income security expenditures Act in 1968.) This limitation was intended to made by the Federal Government. provide an orderly means of adjusting benefit levels under the Plan in response to moderate wage and price increases and to hold in check the adjustments to any sudden changes in the Indexing of Contributions and Benefits economic indicators. The original legislation fur+er provided that In line with its objective of alleviating poverty during the first 10 years of operation the pension and reducing dependency upon income supple- index would also be used in determining changes mentation and social assistance, the Federal Gov- in the earnings ceiling. As for benefits, annual ernment recommended in its 1970 MThite Paper adjustments were not to exceed the S-percent on Income Security that immediate steps be maximum set for changes in the pension index. taken to eliminate certain limitations imposed on For the first 2 years of the Plan’s operation the

36 SOCIAL SECURITY ceiling was fixed at $5,000, an amount closely TABLE 2 -Comparison of consumer price index, pension in- dex, earnings ceiling, and average annual earningsin indus- approximated the average annual earnings of try workers in Canadian industry at that time. Be- ChSUIller ivera@?ml- ginning in 1968, however, the earnings ceiling Year price Index ual earnings for contributions started to move up annually in (lB61=lGfl) In industry

steps of 2 percent, which by law were rounded lB86- ______111 4 _--______t5.m lB67-...-..-.- +?*E down to the next multiple of $100. Because of 196&m.-mm.--... :z : 109111 36 i% 6:714 1969. ______125 6 $2s 5,117 these restrictions on the upward adjustment of 1970...-...... 129 7 ::“8 i 6.5BK 1971...... the ceiling, the desired relationship between 1972...-....e.... :ii ii :;i :: ?% maximum contribution levels and average current 1973s.....-..... 150 4 123 1 IL327

earnings began to disappear when wages and Source Statktics Canada (De srment of Industry, Trade, and Com- prices advanced even faster, stimulated by infla- merce), and Department of Hes Pth and Welfare tionary pressures. By 1970, as table 2 shows, the average earnings out of the Federal-Provincial review and was the in industry had advanced 32 percent, but the first step taken to improve retirement and sur- earnings ceiling had risen by only 6 percent. By vivor benefits. This legislation, enacted by Parlia- 1973, in dollar terms these figures had grown to ment in December 1973, provided that effective $8,327 and $5,600, respectively. In the 8-year January 1, 1974, all benefits paid under the CPP period, from 1966 to 1973, industrial wages rose and the universal pensions and guaranteed income 66 percent while the earnings ceiling had been supplements under the Old Age Security Act increased by only 12 percent. were to be “escalated” by the total increase in It was evident that the decline in the earnings the consumer price index averaged over the 16- ceiling in relation to average wages was having month’ period ended October 31, 1973. For the a serious impact on the level of retirement, sur- year 1975 and each year thereafter, the pension vivor, and disability pensions and that, unless index is to be based on the monthly average of additional adjustments were made, benefits in the consumer price index for the 12-month period future years for persons with earnings at or above ending October 31 of the preceding year. the ceiling would decline steadily in value in At the same time an ad hoc increase was au- relation to their total earnings. Likewise, limiting thorized in the level of the ceiling, with an ad- the adjustment of current benefits to an increment vance to $6,600 for 1974 and to $7,400 for 1975. of not more than 2 percent annually at a time This advance of $1,000 in 1974 represented the when the consumer price index had been rising largest increase in the tax ceiling since the Plan at a greater rate was adversely affecting the came into effect in 1966. purchasing power of existing benefits. With the The effect these adjustments in the ceiling have inflation rate then projected, it seemed likely had upon benefits from 1973 to 1975 is shown in that this deterioration would increase consider- table 3, which compares the maximum rates pay- ably over a period of time. able under the CPP for these years. In light of these developments, three major steps were taken. The first was the removal of the a-percent limitation on the increase in benefits and the ceiling; the second was an ad hoc increase in the earnings ceiling for 1974 and 1975 ; and 1974 AMENDMENTS the third was the adoption of a new formula for Although the ad hoc adjustment in the ceiling the adjustment of the ceiling after 1975. provided a temporary solution to the widening gap between average earnings and the ceiling, certain additional basic inequities and the lack of protection of gensions against future wage and 1973 AMENDMENTS price increases remained. A second set of amend- ments to the CPP were introduced in 1974 that The removal of the 2-percent limit on the included the four major changes mentioned ear- annual adjustment of benefits in payment grew lier. These measures, recommended by the Con-

, BULLETIN, AUGUST 1975 a7 TABLE 3 -Maximum monthly benefit rates under the Can- hoped that, by progressively moving the ceiling ada Pension Plan, 1973-75 toward the new contemplated maximum, equity

Type of beneflt ( 1973 1 1974 1 1975 in the replacement of earnings can be restored.

Retirementpension- Starting at beginning of year ______.____ Startingstendofyear ______Y%it :FiiEi 4~9”: Disability- ______.____ 114 09 125 95 139 35 Wldow(er) Basic Exemption lowered for Social Security Underaae65___.______. 71 12 79 86 88 31 Aged65indover ______68 75 81 67 Contributions Orphan or child of disabled contributor. _ _ _ 23 15 7333:: 37 27 65000 66000 740 00 Death beneflt I--- ______I I I I The 1974 amendments also lowered the basic 1 The maximum amount, 10 percent of earnings at ceiling amount of annual earnings that are exempt from ference of Federal and Provincial JVelfare Min- social security contributions from 12 percent of isters in October 1973, were passed by Parliament the earnings ceiling to 10 percent. This modifica- in November 1974 and came into force on January tion makes it possible to cover certain low-income 1, 1975. workers, such as farmers, fishermen, and certain self-employed persons, who because their earnings are small would be ineligible to participate in the Plan. New Formula for Computing the Earnings Ceiling In 1966, the CPP covered all workers aged 18-70 with annual earnings above $600 and all The 1974 amendments introduce a new formula self-employed persons with earnings of at least for calculating the earnings ceiling. After a tran- $800. Persons whose earnings fall below the basic sitional period that will permit catching up with exemption in any year are not required to con- average earnings in industry, computation of the tribute to the CPP for that year and are, hence, ceiling will be based on the monthly “industrial excluded from coverage. Persons with earnings composite” reflecting average weekly wages and above the minimum, however, are able to include salaries as published by the Labor Division of both the amount exempted from contributions Statistics Canada (Department of Industry, and the earnings on which contributions are Trade, and Commerce). paid in the pension computation. The new formula replaces the former provi- As explained earlier, the basic exemption es- sions of the law in which the adjustment of the tablished at the inception of the CPP was com- ceiling in the years after 1975 was to follow puted as an amount equal to 12 percent of the changes in income measured by an “earnings earnings ceiling, rounded down to a multiple of index.” The earnings index was to have been $100. During the first 8 years of the CPP when based on income-tax returns and was I to have inflation was minimal, the basic exemption re- represented an average of all wages and salaries mained at $600, since the earnings ceiling rose paid in Canada. only moderately in accordance with the adjust- Beginning 1976 and in subsequent years, adljust- ment formula. With the ad hoc increase in the ments will be made by increasing the earnings ceiling to $6,600 under 1974 legislation, exemp- ceiling in stages, at the rate of 121,s percent a tion rose to $700. If the basic exemption had year, until it reaches the average of wages and remained at 12 percent of the ceiling, the earn- salaries of Canadian workers in industry as ings excluded from social securit,y contributions represented by the “industrial composite.” After would have risen in 19’75 to $800 for employees the transitional period, the ceiling will be deter- and $1,066 for the self-employed. Accordingly, an mined for each year by projecting the most recent even larger number of persons would have been “industrial composite” forward 18 months on the excluded from protection under the Plan as the basis of the annual movement of the “industrial basic exemption increased to conform with index composite” averaged out over the past 3 years. changes. It is estimated that during 1975 the “industrial The amendment reduces the minimum level of composite” will reach approximately $9,000 and annual earnings that qualify workers for con- that the earnings ceiling under the new formula tributions and for coverage in a year from 12 will be raised to $8,300 beginning 1976. It is percent to 10 percent of the ceiling-for 1975,

38 SOCIAL SECURITY a basic exemption of $700 rather than the $800 the retirement test under the CPP will increase as would have resulted under the old formula. benefits for approximately 35,000 pensioners dur- In addition, that amendment deletes the require- ing 1975. ment that self-employed persons must earn at least one and one-third times the basic exemp- tion to qualify as a contributor in any one year. Equalizing Benefits for Widowers and Widows The basic earnings exemption is now identical for with Children both employed and self-employed contributors. Beginning 1975, a surviving spouse’s pension will be paid to a widower on the same basis as such benefits were paid previously to widows. In Removal of the Retirement Test addition, children’s benefits will become payable on the disability or death of women contributors Another important change that has the effect on the same basis as such benefits were paid in of increasing benefit amounts is the removal of the past with respect to men. the retirement test under the CPP. Before 1975, Before t.his amendment, only the widow of a persons aged 65-69 had their retirement pensions contributor was entitled to a pension if she had reduced or eliminated if they had earnings that dependent children or was aged 35 or over or exceeded the limits stipulated in the law. The was disabled. Likewise, only the children of a amount of benefit withheld was related to the deceased male contributor were entitled to an earnings ceiling. Pensions were reduced by 50 orphan’s pension, Upon the death of a woman cents for every $1 earned between 18 percent and contributor, the husband was entitled to a widow- 30 percent of the earnings ceiling, and by $1 for er’s pension only if he was disabled and was each 1 dollar earned on amounts above 30 percent wholly or substantially supported by his spouse, of the ceiling. In 1974, for example, earnings up to and her children were entitled to an orphan’s $1,140 per year were exempt from the retirement pension only if they were maintained wholly or test; for earnings from $1,141 to $1,900, a 50- substantially by her. The same distinction applied percent reduction in the benefit was applicable; to the disability pension. and earnings above $1,900 were offset by a reduc- The new law eliminates all points of distinc- tion of 100 percent. tion by providing that the surviving spouses and The new legislation eliminates the retirement children of a deceased or disabled woman con- test altogether by no longer requiring that a per- tributor will qualify for benefits under the same son must have “retired from regular employment” conditions as the surviving spouses and children before he can receive his retirement pension. Now, of a man. all eligible persons aged 65 or older who apply In addition, the Act provides for retroactive for retirement benefits under the CPP may re- entitlement but not retroactive payment. This ceive such benefits as a matter of right, whether change means that the widower, orphans, or de- or not they continue to work and receive, wages. pendent children of a woman contributor who To become eligible for a retirement pension, died or became disabled before the effective date a contributor aged 65 and over must apply for of the amendment will now be entitled to benefits, his pension. The timing of the application varies but that such benefits will not be paid for any with individual circumstance. Eligible persons period before January 1, 1975. must decide whether to draw the pension imme- diately on reaching age 65 or to hold off in order to increase through additional earnings the re- AMENDMENTS TO THE QUEBEC PENSION PLAN tirement credits on which the pension amount is based. (After age 70, the contributor may acquire As pointed ,out earlier in t,his report, the no further retirement credits.) Once an eligible Province of Quebec maintains an earnings-related recipient applies for his pension, he is auto- old-age, disability, and survivor insurance which matically excluded from making contributions to is separate from but comparable with the CPP. the CPP. Until the end of 1972, both plans were closely The Government estimates that the removal of (Continued on page .@?)

BULLETIN, AUGUBl 1975 39 TABLE M-IO.-OASDHI cash benefits: Number of monthly benefits in current-payment status for retired workers and their dependents and for survivors, 1940-75

[Data contain some duplication arising from dual entitlement: set the 1979 Annual Stattsbcd Supplement, p. 91

Retired Wives and Widowed Parents 1 At end ofselected month Total Children r mothers 4 w;?dws workers r msbands r * vidowers * 6 - I I

%omber__.______-_-___-_-_----.-----.----- 222,433 112,331 !a,740 20,499 4,437 824 1945 ______1,2x78,107 518.234 159,183 12Q,581 93,781 6,269 1960--.-.----.----..------39477,243 1,770,984 503,350 169,438 314,189 14,579 ;;w;y-I -___--__-_-_----___----.------7,960,616 y;,g 1,191,953 701,360 25,166 _- ____.______.-_-_-_------14,157,133 2,209,384 2: % ;*;g,84& Isal______.______-__------15,467,673 8:924:849 2,392,012 428:138 1962-..-...... --.------I y7;sQ; 9,738,bDO 1:859:191 1963...--.-.-.-.------;;$g*g; 1964 ______-___-___--_------1s:23a:173 1965 __.______-__-.__------19,127,716 11:100:584 35,239 pm; __.______.-______----- _------11,653,443 -______-_- XE: 12,019,175 2,872,tMb 1968::::::::::::::::::::::::: ------22:225:253 12,420,742 %%~ 2,937,890 1969 ______22,826,514 12,822.2Ql :3x: 611:639 1970 ______---__-_------_~~~~~~~~~-- 23,663,634 ;yg.g 3:233:705 523,136 1971______--_-___------24.361,500 3.336.301 53#2l2 1972~. ______--_____---______---- 14: 555:475 3,427,202 1973 ______- --______------%%*?2 15.364.562 3,526.101 571:QO7 1974 ______------______--- 2l3:942:02a 15,953,492 3,513.092 573.557

1974 28,520,363 15,62Q,411 ______------15,493,518 June-. _ . ______15,5&3,935 15,659,819 ______---_------.------15,726,168 September ______------.--- 15.787,495 October ______-- 26,792.W 15,846.191 November....--.--.-.------26.881,Qbb December...... ------26,942,02J3 :x2%I . 1975 January ..-______--_-_------27,035.736 16.040,839 February ______------. --- 27,083.554 U&070,281 March ______------;;Jpg April ______------.------, , :M%i, I 2,827.917

4 Includes, heginnIng IQW, surviving divorced mothers with entitled chll dren In their care 1 Includes, heglnning September 1955, widows aged 3Q-51 and entltled surviving divorced wives aged Bo and over: heginnlng March lQb8, disabled wldows aged 50-59 and disabled widowers aged bQ-61: and heglnning January 1973 nondisabled widowers aged bQ-31. ( Authorized by 1Qbb legislation for persons aged 72 and over not insured under the regular or transitional pmvisions of the Social &cUrity Act. heneflts until end of sgmester.

SOCIAL SECURITY ABROAD in benefits when earnings exceed a specified (Continued from page 39) amount than was under the CPP. These changes coordinated and operated almost as a single pro- resulted in significant divergencies between the gram. At the beginning of 1973, however, Quebec two systems. made substantial changes in its program. In October 1973, following the Conference of The limit on the adjustment of benefits was Federal and Provincial Ministers of Welfare, new raised from 2 percent to 3 percent a year. An measures were enacted by the Quebec Legislature ad hoc adjustment was made in the earnings designed to bring its pension plan again into ceiling, which was raised to $5,900 in 1973, $6,100 line with the rest of Canada. On January 1,1974, in 1974, and $6,300 in 19’75. Pensions for widows, amendments to the QPP provided for further disabled widowers under age 65, and other dis- ad hoc adjustments of the ceiling to $6,600 and abled persons were increased from $27.60 a month $7,400 in 1975 to make it comparable with the in 1972 to $80 in 1973. The retirement test was CPP. also altered to provide for a smaller reduction Further measures in the direction of restoring

48 SOCIAL SECURITY TABLE M-ll.-OASDHI cash benefits: Amount of monthly benefits m current-payment status for retired workers and their dependents and for survivors, 1940-75 [In thousands1

ersons with Widowed Udows and Retired Wives and Parents f At end of selected month Total Children a mothers 4 ivldowers * ) ,peclal age- workers 1 msbends ’ ’ ‘2 benefits 9

$2,539 3361 $668 8402 $90 I____-____-__ El!? 12,538 2.040 4,858 2,391 1,893 2: ,____-__--__- 126:8’6 77,678 11.885 ._ 19.346 5.801 11,481 535 ,_-_--__-____ 411,613 276,942 46,444 13,403 ,_____-_-_-__ 888,320 596,849 I%.2 88,578 23,795 “8% 2:466:*:;t .___-_-_--___ 1,003,937 94:366 96,347 25,425 110:179 .*--m-----e-- 1,099,227 x~: lW.305 2,541 .--*--*-*--.- 1963 ______I 1,166,587 789:064 103,059 E% xi: E% ._-______---- 1964. ______------I 1.224,240 194,769 114:947 27:954 146:476 2:683E .______-_-__- 1965 ______1,396,817 983:338ET% 114.035 141.802 174,883 .__-___-----_ 1966 ______1,502,863 154,618 2Ei 192,821 j 2,642 3;;.;;; 1987 ______-__--______1 1,575,646 ;,;p:; ::%4 164,706 * $g; 2,587 1968 ______1,880,601 135:479 196,216 w% ;.78; 26:488 1969 ______-____-_------______1,964,275 1:287:300 137,176 205,260 38:406 269:799 23,647 1970 ___~~~~~~~-~----~~~~~-~------, 2.385.926 1,576,551 163,263 245,515 45,258 “f’$.;%; 2&b 24,128 1071______---____------2.763.022 1,840,748 184,420 280,203 51,163 3.103 1972 ______i 3.514.741 2.363,098 229,973 62,457 483:161 3.620 %ii 1973 ______-_------3.821.165 2,556,956 %E 67,578 $z 1974 ______-_ 4.445.245 3,003,620 i%,o”:::i 409:x34 76,986 Ei:% ~:~

1974 2.785.142 3,652 20.765 2,779,334 z% El :ii 3,620 20,389 2,X16,872 267:Obl 3,743 20,976 ;,;pg Ef3”:E 3,722 _.______---..___------4.362.100 E2% 655:966 3,700 3;: September ______4 381,161 2: 953: 965 2F8.757 657,920 3,693 1s:sR3 October... ______. 4.399,446 2,967,834 269,301 659,913 18.536 ~~~~:,~------4,425,902 2,988,234 270,092 661,851 EG 18,166 ______------4,446,245 3,003,620 270,618 663,678 3:626 17,883 1975 hUlfL~. _ _ -______- _- ---_-___ ------4,470,838 3,025,633 270,944 410,532 665,552 3,595 17.294 February. ______._____.____-- 4,482,951 3,033,926 271.264 412,700 :Ei 667,369 3,571 16,985 March-...... -...... ------~ 4.490.948 271,310 415,763 76:200 668.701 3,547 April ______4,502.951 p$,y8g1 I 271.614 418,342 75,885 670,424 3,626

1 Persons aged 65 and over (and aged 62-64, beginning 1956 for women and 4 Includes, beginning 1950, surviving divorced mothers with entitled chll- 1961 r0r men). dren in their care. 1 Includes, beginntng 1950, wife beneficiaries under age 65 with entftled bIncludes, beginnIng September 1965, widows aaed 60-61 and entitled children in their care and. beginning September 1965, entitled divorced wives surviving divorced wives aged 80 and over: beginnlng March 1968, disabled 1 Includes. beginning 1957, dlsahled persons aged 18 and over whose dis- widows aaed 59-59 and disabled widowers aged 50-61: and beginning January abilily began before age 22 (age 18 before January 1973) and beginning Sep- 1973, nonaisabled widowers aged 60-61. tember 1965, entitled full-time students aged 18-21. Beginning January 1973, 0 Authorized by 1966 legislation for persons aged 72 and over not Insured students who attain age 22 before end of semester may continue to receive under the regular or transitional provisions of the Social Security Act. benefits until end of samestir.

uniformity of the two plans were adopted by the plans still remain. Recent amendments of the Quebec Assembly in December 1974: (1) equal QPP, for example, did not remove the retirement treatment of men and women contributors under and earnings test for Quebec contributors aged the QPP with respect to benefits, including sur- 65-69. Full retirement benefits are thus available vivor benefits for widowers and the entitlement from age 65 only for those who have in fact of the children of a woman contributor to benefits retired from regular employment and do not earn upon disability or death on the same basis as from part-time or casual employment more than a man; (2) the adoption of a new formula for $1,320 a year.6 Survivor benefits also rem&n calculating the ceiling, similar to that under the higher under the QPP than under the CPP. CPP, described earlier ; and (3) adoption of a These differences do not, however, affect the parallel change in the formula for calculating coordination and portability of retirement credits the basic exemption from social security contri- and benefits between the two plans. butions. a For earnings above $1,320 per year, the retirement A few points of divergence between the two benefit is reduced by 60 cents for each dollar earned.

BULLETIN, AUGUBT 1975 49