Press Releases

TORONTO, ONTARIO -- (MARKET WIRE) -- 02/11/12 -- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 21:

Learn how much you are entitled to receive under the Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP)

When you estimate your retirement income, factor into the equation how much you expect to receive from the CPP or QPP (for residents of Quebec). The CPP and QPP are defined benefit pension plans that offer guaranteed income for the life of plan members. However, your entitlement will depend upon how much you contributed as a member of the plan and how long your contributions remained in the plan.

Anyone aged 18 years and older is entitled to participate in the CPP/QPP, but you must have made at least one contribution to the plan and you can only begin to receive CPP/QPP payments after you reach the age of 60. You can apply for your benefits any time between the ages of 60 and 70; you can choose to work after you have begun collecting, and you can continue to contribute until you are 70 years old.

To give you an idea of the size of pension you may be entitled to receive under the CPP/QPP, contact Service Canada and obtain a pension statement.

Tip Number 22:

Understand the benefits of the Old Age Security (OAS) pension

With the OAS pension; you are entitled to receive a monthly income after the age of 65, and eligibility is based on your age and on Canadian residency.

While the maximum OAS pension you are entitled to receive is not a large amount, it is important to understand the rules surrounding OAS pensions and how they are calculated:

1.  Residency - to get the maximum pension you need to have lived in Canada
    for 40 years after your 18th birthday.
2.  Income Taxation - the pension is taxed as ordinary income. If your
    income is relatively low then your personal income tax credits may
    offset any taxes owing.
3.  Income Threshold & Clawback - If your annual retirement income is above
    a certain threshold, you will have to repay some or all of the OAS (this
    is called the "clawback").
4.  Retirement Outside of Canada - Once you start collecting OAS you will
    continue to receive it for the rest of your life. If you retire outside
    of Canada however, you will only continue to receive your OAS pension if
    you have lived in Canada for at least 20 years after your 18th birthday
    at the time you start collecting OAS.

For more information on retirement: www.bmo.com/retirement

Get the latest BMO press releases via Twitter by following @BMOmedia.

Contacts:
For all news media enquiries please contact:
Rachael Mckay, Toronto
416-867-3996
rachael.mckay@bmo.com

Sarah Bensadoun, Montreal
514-877-8224
sarah.bensadoun@bmo.com

Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com

Source: BMO Financial Group and BMO Bank of Montreal

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 21:

Learn how much you are entitled to receive under the Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP)

When you estimate your retirement income, factor into the equation how much you expect to receive from the CPP or QPP (for residents of Quebec). The CPP and QPP are defined benefit pension plans that offer guaranteed income for the life of plan members. However, your entitlement will depend upon how much you contributed as a member of the plan and how long your contributions remained in the plan.

Anyone aged 18 years and older is entitled to participate in the CPP/QPP, but you must have made at least one contribution to the plan and you can only begin to receive CPP/QPP payments after you reach the age of 60. You can apply for your benefits any time between the ages of 60 and 70; you can choose to work after you have begun collecting, and you can continue to contribute until you are 70 years old.

To give you an idea of the size of pension you may be entitled to receive under the CPP/QPP, contact Service Canada and obtain a pension statement.

Tip Number 22:

Understand the benefits of the Old Age Security (OAS) pension

With the OAS pension; you are entitled to receive a monthly income after the age of 65, and eligibility is based on your age and on Canadian residency.

While the maximum OAS pension you are entitled to receive is not a large amount, it is important to understand the rules surrounding OAS pensions and how they are calculated:

1. Residency - to get the maximum pension you need to have lived in Canada

    for 40 years after your 18th birthday.
2.  Income Taxation - the pension is taxed as ordinary income. If your
    income is relatively low then your personal income tax credits may
    offset any taxes owing.
3.  Income Threshold & Clawback - If your annual retirement income is above

a certain threshold, you will have to repay some or all of the OAS (this

    is called the "clawback").
4.  Retirement Outside of Canada - Once you start collecting OAS you will

continue to receive it for the rest of your life. If you retire outside

of Canada however, you will only continue to receive your OAS pension if

    you have lived in Canada for at least 20 years after your 18th birthday
    at the time you start collecting OAS.

For more information on retirement: www.bmo.com/retirement

Get the latest BMO press releases via Twitter by following @BMOmedia.

FOR FURTHER INFORMATION PLEASE CONTACT:
        For all news media enquiries please contact:
        Rachael Mckay, Toronto
        416-867-3996
        rachael.mckay@bmo.com

        Sarah Bensadoun, Montreal
        514-877-8224
        sarah.bensadoun@bmo.com

        Laurie Grant, Vancouver
        604-665-7596
        laurie.grant@bmo.com

Source: BMO Bank of Montreal

Photos are available on Business Wire's Website and AP PhotoExpress of the Rhythm Heaven Fever Launch Event.

Photo 1: In this photo provided by Nintendo of America, fans line up outside of iam8bit’s gallery to celebrate the launch of the new Wii game, Rhythm Heaven Fever, Friday, February 10, 2012 in Los Angeles. The rhythm-based game, which debuts Feb. 13, challenges players to keep the beat on more than 50 mini-games.

Photo 2: In this photo provided by Nintendo of America, Ramiro D. of Los Angeles dances to the beat while participating in a Rhythm Heaven Fever-themed interactive video on Friday, Feb. 10, 2012. Nintendo fans gathered at the iam8bit gallery in Los Angeles to celebrate the Feb. 13 launch of the rhythm-based game, which challenges players to keep the beat on more than 50 mini-games.

Photo 3: In this photo provided by Nintendo of America, fans (L to R) John D., John B. and RJ D., of Lancaster, Calif. celebrate the launch of the new Wii game, Rhythm Heaven Fever, at the iam8bit gallery, on Friday, February 10, 2012 in Los Angeles. The rhythm-based game, which debuts Feb. 13, challenges players to keep the beat on more than 50 mini-games.

Photo 4: In this photo provided by Nintendo of America, artists Yoskay Yamamoto (front) and Mari Inukai, both from Japan create original paintings inspired by the new Wii game Rhythm Heaven Fever at a special event to celebrate the game's launch, Friday, February 10, 2012 in Los Angeles. The rhythm-based game, which debuts Feb. 13, challenges players to keep the beat on more than 50 mini-games.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50165687&lang=en

GolinHarrisAndrew Kelly415-318-4373ankelly@golinharris.com

Source: Nintendo