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WME > 12 - Government Pension Programs > Flashcards

12 - Government Pension Programs Flashcards

1
Q

Who must contribute to CPP

A

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

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2
Q

What happens to CPP when employees work outside of Canada regularly

A

Employers can enroll them as a group to continue coverage

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3
Q

Workers not covered under CPP

A

Migrant workers
Casual
Exchange teachers
Religious people under vow of poverty

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4
Q

Earnings on which CPP contribution must be paid

A

Above YBE and up to YMPE

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5
Q

YMPE for 2022

A

$64,900

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6
Q

CPP contribution rates for employer/employee

A

5.7

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7
Q

Contributors to CPP are eligible for 4 main benefit

A

Retirement pension
Disability
Survivor benefit
Death benefit

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8
Q

When and how is CPP recalculated

A

Annually to reflect CPI

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9
Q

Enhanced CPP

A

Additional 4% on earnings fro YMPE to YAMPE

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10
Q

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

A

Regular is non refundable tax credit
Enhanced is tax deduction

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11
Q

How long do you have to work to get CPP

A

One calendar year

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12
Q

How to calculate maximum CPP available

A

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%

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13
Q

What is the beginning of the contributory period for CPP

A

January 1966 or when turned 18

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14
Q

End of CPP contributory period

A

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

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15
Q

4 adjustments that can be made to contributory period

A

Months that CPP disability is paid

17% of lowest earning years - up to 8 years

Raising kids to age 7

Low earnings after 65

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16
Q

Monthly CPP adjustment for payment under 65

A

0.6%

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17
Q

Monthly CPP adjustment for taking CPP after 65

A

0.7%

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18
Q

Do CPP benefits just start.

A

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

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19
Q

Can you cancel CPP

A

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

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20
Q

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

A

36%

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21
Q

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

A

42%

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22
Q

Post retirement benefit

A

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
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23
Q

Is CPP participation mandatory

A

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

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24
Q

Maximum PRB

A

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

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25
Q

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

A

No deadline if married, 4 years for common law

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26
Q

Stipulations for sharing CPP

A

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

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27
Q

Requirements for CPP disability benefit

A

Disability must be physical or mental
Must be severe and prolonged

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28
Q

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

A

Considered disabled according to CPP legislation

Earned specified minimum amount and contributed to CPP in 4 of last 6 years

Under 65

29
Q

What does CPP disability payments consist of

A

Flat component and earnings related component

Earnings part is 75% of retirement pension, calculated as if they reached 65 when disabled

30
Q

When do CPP disability benefits start and end

A

Start 4 months after disability

End at recovery, 65 or death

31
Q

When does CPP disability turn into retirement pension

A

At 65 or if retiring earlier between 60 and 65

32
Q

Are children eligible for disability payments

A

Yes, if full time student between 18 and 25

33
Q

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

A

3 years

34
Q

Amount of CPP survivor benefit

A

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

$2500 max

35
Q

CPP survivor if remarried

A

Eligible for highest if widowed more than once

36
Q

Amount of survivor CPP depends on 3

A

If spouse was receiving CPP or disability

How much and how long contributor paid in

Age of partner when contributor died

37
Q

CPP survivor benefit if surviving spouse is over 66

A

60% of deceased CPP if survivor not receiving

  • max over max cancels, if less may receive some
38
Q

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

A

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

39
Q

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

A

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

40
Q

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

A

Not paid until 65 or disabled

41
Q

CPP death children benefit

A

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

42
Q

How often is OAS adjusted

A

4 times

43
Q

OAS program consists of 4 benefits

A

OAS

GIS

allowance

Allowance for survivor

44
Q

Earliest OAS start date

A

65

45
Q

To qualify for OAS you must have one of

A

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

46
Q

Basic requirement to receive OAS

A

At least 10 years in Canada after 18

47
Q

Basic requirement to receive OAS outside of Canada

A

Loved in Canada for at least 20 years after 18

48
Q

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

A

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

49
Q

How is partial OAS calculated

A

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

50
Q

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

A

Returned within 6 months of ending or turned 65

Proof of employment and return to Canada

51
Q

OAS application process

A

After 64, letter notifying they are automatically enrolled or telling them to enroll

Apply right after 64 birthday

52
Q

Increase in OAS after 65

A

0.6% per month

53
Q

Is OAS taxable

A

Yes

54
Q

How much is clawback

A

15 cents for every dollar above threshold

55
Q

Amount when OAS clawback starts

A

$79,845

56
Q

Full OAS clawback amount

A

$129,757

57
Q

How to apply for GIS

A

Automatic

58
Q

What does GIS payment depend on. 2

A

Marital status

Income

59
Q

How often is GIS recalculated

A

Quarterly

60
Q

Is gis taxable

A

No

61
Q

Is GIS payable outside of Canada

A

No

62
Q

How is GIS reduced

A

By other income over $3500.

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

63
Q

Qualifications for allowance 5

A

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

64
Q

At what income is GIS totally eliminated

A

$8,600

65
Q

Allowance for survivors

A

Low income and spouse passed away

66
Q

Is allowance indexed

A

4 x a year with CPI

67
Q

Is OAS included as income for allowance

A

No

68
Q

Process to get allowance

A

Must be applied for

WME (11 decks)

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