What steps must a Canadian take with Service Canada and CRA before permanently moving abroad to preserve pension and health entitlements?
Executive summary
Moving abroad requires proactive steps with both the Canada Revenue Agency (CRA) and Service Canada to preserve pension entitlements and avoid unexpected loss of health coverage: establish and document non‑resident tax status with CRA, notify Service Canada and keep pension records current so CPP and OAS can continue, and confirm how provincial health plans and income‑tested supplements (like GIS) are affected [1] [2] [3]. Canadians should also check whether a bilateral social security agreement applies, arrange direct deposit or banking, and plan for withholding tax or treaty relief [4] [5] [6].
1. Establish and document tax residency with CRA before leaving
The first and most consequential step is to determine and document residency status for tax purposes with CRA, because being a non‑resident affects withholding rates, access to locked‑in funds and tax reporting; CRA issues a non‑residency confirmation letter when an application (e.g., NR73 or equivalent) is assessed and that letter sets the effective date of non‑residency used by pension administrators [1] [7]. Pension plans and some government programs may require recent CRA confirmation—if the CRA letter is over two years old administrators may ask for Form NR301 or re‑confirmation—so obtain and keep the CRA paperwork current [1].
2. Notify Service Canada and keep pension contact details current
Service Canada must be informed of a permanent move so CPP and OAS payments continue without interruption and so any eligibility or payment adjustments are handled correctly; CPP eligibility depends on contribution history rather than current residency, but Service Canada needs accurate contact, bank and country information to pay benefits abroad [4] [8]. Apply for pensions through Service Canada’s international pages if living abroad, and provide the documents requested when applying from or outside Canada to ensure benefits are processed [9] [6].
3. Check international social security agreements and how they affect entitlement
Before departure, verify whether the destination country has a social security (totalization) agreement with Canada because such agreements can combine contribution or residency periods to meet eligibility, eliminate citizenship barriers, and allow coordination of CPP/OAS with foreign systems [6] [4]. For example, the Canada–U.S. arrangement alters residency and contribution interactions and specific rules (including Quebec/QPP nuances) are detailed in country pamphlets and must be checked against personal work histories [10].
4. Arrange banking and anticipate withholding tax/treaty relief
Set up direct deposit options accepted by Service Canada (many countries are supported) or keep a Canadian account for ease of payment; pension administrators will withhold tax according to CRA non‑resident guidelines unless an exemption or reduction is authorized in writing by CRA or a tax treaty applies [5] [2]. Non‑resident withholding (commonly cited around 25% in secondary sources) varies by country and treaty—confirm rates with CRA and plan whether Form NR301 or NR4 reporting will be required [5] [11].
5. Plan for provincial health coverage loss and secure replacement insurance
Provincial and territorial health coverage often lapses after prolonged absence (commonly six months, though rules vary), so confirm rules with the relevant provincial ministry and arrange private or destination‑country coverage before departure; Government of Canada travel/retirement guidance advises verifying local health ministry requirements and planning for continuity of care and legal documents like power of attorney [12] [3].
6. Notify occupational pension administrators and understand locked‑in rules
Employer and public service pension plans require notification when members become non‑residents because tax withholding, reporting (T4A/NR4), direct deposit and options to transfer or unlock locked‑in funds depend on residency and CRA confirmation; some plans will accept a CRA non‑residency date or may require additional forms to permit reduced withholding under a tax treaty [7] [5]. Follow the plan’s “living outside Canada” guidance to avoid surprises at the time of benefit payment.
7. Final housekeeping: registrations, documentation and contingency planning
Before leaving, register with the Registration of Canadians Abroad service, compile CRA and Service Canada letters, update beneficiaries and powers of attorney, and keep copies of employment/pension records—this administrative trail supports future claims, reinstatement of GIS if returning, and timely responses to requests from foreign or Canadian authorities [3] [2]. If information is absent from the cited sources, that limitation is noted and specific provincial or plan rules should be checked directly with the named agencies.