12 - Government Pension Programs

Question 1

Who must contribute to CPP

Answer 1

18 - 70
Earned income over minimum, years basic exemption YBE. 2019 was $3500

Question 2

What happens to CPP when employees work outside of Canada regularly

Answer 2

Employers can enroll them as a group to continue coverage

Question 3

Workers not covered under CPP

Answer 3

Migrant workers
Casual
Exchange teachers
Religious people under vow of poverty

Question 4

Earnings on which CPP contribution must be paid

Answer 4

Above YBE and up to YMPE

Question 5

YMPE for 2022

Answer 5

$64,900

Question 6

CPP contribution rates for employer/employee

Answer 6

5.7

Question 7

Contributors to CPP are eligible for 4 main benefit

Answer 7

Retirement pension
Disability
Survivor benefit
Death benefit

Question 8

When and how is CPP recalculated

Answer 8

Annually to reflect CPI

Question 9

Enhanced CPP

Answer 9

Additional 4% on earnings fro YMPE to YAMPE

Question 10

How are CPP and enhanced CPP contribution dealt with in income tax

Answer 10

Regular is non refundable tax credit
Enhanced is tax deduction

Question 11

How long do you have to work to get CPP

Answer 11

One calendar year

Question 12

How to calculate maximum CPP available

Answer 12

Add Maximum YMPE over 5 years / 5
/12 (to make monthly) x 0.25 (supposed to replace 25% of salary)

Enhancement is supposed to replace 33%

Question 13

What is the beginning of the contributory period for CPP

Answer 13

January 1966 or when turned 18

Question 14

End of CPP contributory period

Answer 14

Month of 70th birthday, month of death or month before pension begins

Question 15

4 adjustments that can be made to contributory period

Answer 15

Months that CPP disability is paid

17% of lowest earning years - up to 8 years

Raising kids to age 7

Low earnings after 65

Question 16

Monthly CPP adjustment for payment under 65

Answer 16

0.6%

Question 17

Monthly CPP adjustment for taking CPP after 65

Answer 17

0.7%

Question 18

Do CPP benefits just start.

Answer 18

No you have to apply
It takes 1 - 3 months
You can get up to a year of back pay but not beyond 65

Question 19

Can you cancel CPP

Answer 19

Only within 6 months of receiving it
All payments must be returned

Question 20

How much
Over is CPP if you take it at 60 instead of 65

Answer 20

36%

Question 21

If CPP is delayed to 70, how much more would you get

Answer 21

42%

Question 22

Post retirement benefit

Answer 22

PRB

CPP benefits paid to people who continue to work and make CPP contributions while already receiving CPP between 60 and 70

• income must be over YBE

Question 23

Is CPP participation mandatory

Answer 23

Yes, for working people 18 to 65, over 65 it is optional to employed and self employed but mist stop at 70

Question 24

Maximum PRB

Answer 24

1/40thof the maximum retirement pension for the year multiplied by the actuarial adjustment factor

Question 25

What is the application deadline to request a splitting of pension CPP credits when divorcing

Answer 25

No deadline if married, 4 years for common law

Question 26

Stipulations for sharing CPP

Answer 26

Both must be over 60 and collecting CPP, they can only share from when they were together

Question 27

Requirements for CPP disability benefit

Answer 27

Disability must be physical or mental Must be severe and prolonged

Question 28

To be eligible for CPP disability pension, contributors must meet all of the following. 3

Answer 28

Considered disabled according to CPP legislation Earned specified minimum amount and contributed to CPP in 4 of last 6 years Under 65

Question 29

What does CPP disability payments consist of

Answer 29

Flat component and earnings related component Earnings part is 75% of retirement pension, calculated as if they reached 65 when disabled

Question 30

When do CPP disability benefits start and end

Answer 30

Start 4 months after disability End at recovery, 65 or death

Question 31

When does CPP disability turn into retirement pension

Answer 31

At 65 or if retiring earlier between 60 and 65

Question 32

Are children eligible for disability payments

Answer 32

Yes, if full time student between 18 and 25

Question 33

How long would you have had to contribute to qualify for death or survivor benefit for CPP

Answer 33

3 years

Question 34

Amount of CPP survivor benefit

Answer 34

6 months worth of CPP or amount if person would have been 65 at death $2500 max

Question 35

CPP survivor if remarried

Answer 35

Eligible for highest if widowed more than once

Question 36

Amount of survivor CPP depends on 3

Answer 36

If spouse was receiving CPP or disability How much and how long contributor paid in Age of partner when contributor died

Question 37

CPP survivor benefit if surviving spouse is over 66

Answer 37

60% of deceased CPP if survivor not receiving * max over max cancels, if less may receive some

Question 38

CPP survivor benefit if surviving spouse is 45 to 64 ( or under 45 with dependent/ disabled chi.d)

Answer 38

Flat rate plus 37.5% of deceased, if survivor not receiving any

Question 39

CPP benefit of surviving spouse if 35 to 45 with no dependents

Answer 39

Flat rate plus 37.5% of deceased CPP, reduced by 1/120th for each month age is less than 45 at contributors death

Question 40

CPP survivor benefit if spouse under 35 and not disabled/depends

Answer 40

Not paid until 65 or disabled

Question 41

CPP death children benefit

Answer 41

Monthly benefits payable to each child if under 18, or 18 to 25 in school

Question 42

How often is OAS adjusted

Answer 42

4 times

Question 43

OAS program consists of 4 benefits

Answer 43

OAS GIS allowance Allowance for survivor

Question 44

Earliest OAS start date

Answer 44

65

Question 45

To qualify for OAS you must have one of

Answer 45

Canadian or legal resident on day preceding application approval If no longer in Canada, must have been Canadian or legal resident on day preceding the day they stopped living in Canada

Question 46

Basic requirement to receive OAS

Answer 46

At least 10 years in Canada after 18

Question 47

Basic requirement to receive OAS outside of Canada

Answer 47

Loved in Canada for at least 20 years after 18

Question 48

If person has not lived 40 years in Canada, how do they qualify for full OAS

Answer 48

If on July 1, 1977 met one of the below conditions - lived in Canada July 1, 1977 - lived in Canada before July 1, 1977 after turning 18 - valid immigration visa on July 1, 1977 *. Also lived in Canada 10 year before OAS application

Question 49

How is partial OAS calculated

Answer 49

1/40th of full OAS for each full year after 18th birthday

Question 50

If working for Canadian employer outside Canada ( armed forces or finance), may have time abroad counted if 2 conditions

Answer 50

Returned within 6 months of ending or turned 65 Proof of employment and return to Canada

Question 51

OAS application process

Answer 51

After 64, letter notifying they are automatically enrolled or telling them to enroll Apply right after 64 birthday

Question 52

Increase in OAS after 65

Answer 52

0.6% per month

Question 53

Is OAS taxable

Answer 53

Yes

Question 54

How much is clawback

Answer 54

15 cents for every dollar above threshold

Question 55

Amount when OAS clawback starts

Answer 55

$79,845

Question 56

Full OAS clawback amount

Answer 56

$129,757

Question 57

How to apply for GIS

Answer 57

Automatic

Question 58

What does GIS payment depend on. 2

Answer 58

Marital status Income

Question 59

How often is GIS recalculated

Answer 59

Quarterly

Question 60

Is gis taxable

Answer 60

No

Question 61

Is GIS payable outside of Canada

Answer 61

No

Question 62

How is GIS reduced

Answer 62

By other income over $3500. $1 for every other monthly income, therefore 50% over 3500

Question 63

Qualifications for allowance 5

Answer 63

Spouse who receives OAS and GIS Between 60 and 64 Canadian or legal resident at time approved Annual combined less than maximum allowable annual threshold Lived in Canada since 18 for at least 10 years

Question 64

At what income is GIS totally eliminated

Answer 64

$8,600

Question 65

Allowance for survivors

Answer 65

Low income and spouse passed away

Question 66

Is allowance indexed

Answer 66

4 x a year with CPI

Question 67

Is OAS included as income for allowance

Answer 67

No

Question 68

Process to get allowance

Answer 68

Must be applied for