CPP splitting evenly divides pensionable earnings accumulated during a marriage or common-law relationship

The Canada Pension Plan (CPP) credit splitting process involves calculating the total pensionable earnings that both partners accumulated during their time living together. The combined credits are then divided equally between both parties, regardless of who earned more during the relationship. This process, also known as CPP credit division, creates a permanent reallocation that can’t be reversed.

• Total up all CPP contributions made by both partners during cohabitation
• Divide the combined pensionable earnings by two
• Reallocate credits equally to each person’s CPP record
• Apply adjustments to each partner’s future CPP benefits