Final answer:
The CPP for an employee turning 70 is based on their work history and contributions, with increased benefits for delaying until after 65, up to 70. CPP disability payouts require proof of a severe and long-lasting disability and sufficient contributions to the plan. Adjustments to age and eligibility criteria may be influenced by legislative changes, as seen with Social Security in the US.
Step-by-step explanation:
The Canada Pension Plan (CPP) is similar to the Social Security system in the United States, which provides retirement, disability payouts, and survivor benefits. For an employee who turns 70, the CPP is calculated based on the individual's work history and contributions made to the plan during their working years. In Canada, employees can start receiving CPP benefits starting at age 60, but if they choose to delay receiving the benefits until after age 65, they will receive an increased amount up to age 70. For employees deemed disabled, CPP offers a disability payout, which requires the worker to demonstrate that their disability is severe and prolonged, lasting at least 12 months, and that they have made sufficient contributions to CPP. The amount received for disability benefit is not directly based on contributions, but rather on a flat-rate portion plus an additional amount based on how much and for how long they have paid into CPP.
Furthermore, specific adjustments and legislations such as those enacted in the United States in 1983, which saw the full retirement age increased gradually, are significant. Similar approaches can be taken by the Canadian government when modifying the CPP calculations or eligibility criteria. It is crucial for the Canadian public to stay informed as these changes can affect retirement planning and benefits for the elderly and disabled individuals.