Chapter 2

Question 1

Government Programs

Answer 1

Includes Health Care, Retirement Income, and Income Replacement

Question 2

Universal Health Care

Answer 2

► Health care is consuming a larger percentage of overall provincial budgets and is predicted to continue to increase.

►Health care is a provincial responsibility.

►The federal government provides financial transfers to provinces for health care
► but is primarily involved in health care through operating the ministry of Health Canada and maintaining the Canada Health Act.

Question 3

5 principles outlined in the Canada Health Act for provincial adherence:

Answer 3

Public: Not-for-profit administration and be accountable to the province.

• Comprehensive: It must cover all medically required services.
• Universal: All eligible residents must be covered.
• Portable: Coverage is portable from one province to another.
• Accessible: Reasonable access to services by all residents, and not restricted due to extra billing or other charges.

Question 4

Provincial Programs

Answer 4

►Provincial governments are generally responsible for the legislation, funding, and overall accountability of health care delivery within their jurisdiction.

► The actual delivery of health care services is through large organizations such as Alberta Health Services, and separate or private hospitals and clinics.

Question 5

the province will assure citizens receive coverage for:

Answer 5

• Physician visits
• Allied Health services
• Hospital services
• Out-of-province benefits
• Medical and Diagnostic services

►It is because there are limitations on what is covered that there become opportunity and value to employers offering additional health benefits to employees.

Question 6

PREMIUM

Answer 6

In some provinces, citizens are required to make a special contribution to the funding of the health care plan

Question 7

Retirement Income & Income Replacement Supports

Answer 7

►Expenses usually continue when a person is no longer working because of retirement, injury, or disability.

►Several government programs help citizens maintain cash flow while not working.

►It is important to recognize that the government rarely intends for income programs to meet all the income needs of a non-working citizen.
►Personal savings are expected to be acquired and used.

Question 8

3 sources of Retirement Income

Answer 8

The federal government offers three principle sources of retirement income:

Old Age Security (OAS)
• Guaranteed Income Supplement (GIS)
• Canada Pension Plan (CPP)
(Note: Quebec offers QPP as a separate pension plan to its citizens)

Question 9

Retirement Income

Answer 9

OAS, GIS, and CPP are seen as the base of retirement income in Canada

►These three programs are augmented by two federal savings programs intended to help citizens save for their future.

1. Registered Retirement Savings
2. Tax-Free Savings Account

► An employer plan that is designed to provide about 30–40% of an average employee’s retirement income should achieve a well-designed benefit plan
►Plans that provide greater income are generally considered ‘rich plans’.

Question 10

Old Age Security Benefits

Answer 10

are not directly paid for by employers but rather are funded through general taxation.

► It provides a flat monthly benefit to Canadians meeting residency requirements

►To be eligible, the citizen must have an annual income below $122,843.

Question 11

Guaranteed Income Supplement

Answer 11

is a companion benefit to the OAS and provides income to those who have little other income than OAS.

►Therefore, it is income-tested.

►Also, a spouse of a pensioner may receive an allowance or survivor’s allowance if they are between the ages of 60–64.

Question 12

Canadian Pension Plan

Answer 12

Is funded through employer and employee contributions.

►It is a mandatory pension plan that is fully portable throughout Canada.

►CPP premiums are paid equally by employers and employees, and only contributors (employees) will be able to accrue a retirement pension from CPP.

► based on the employee’s CPP pensionable earnings during their career. CPP pensionable earnings are limited to the “year’s maximum pensionable earnings or YMPE

►An individual who earned in excess of the YMPE every year will be entitled to the maximum CPP retirement pension.
►After retirement, the pension is increased based on changes to the Consumer Price Index.

Question 13

Income Replacement Sources

Answer 13

People that are unable to work may be eligible for government programs that partially replace the income they would otherwise receive.

► Employment Insurance (EI)
►Workers’ Compensation (WC)

Question 14

Loss of a Job

Answer 14

►Temporary financial assistance is provided through Employment Insurance while a person searches for new work, updates their skills, or both.

► Recipients of insurance are required to first apply for benefits and then maintain a record of work search or skills upgrading.

Question 15

Childbirth & Care

Answer 15

► Maternal Benefits

► Parental: Standard or Extended
(can choose either).

Question 16

Maternal Benefits

Answer 16

Are offered to biological mothers that cannot work because they are pregnant or have recently given birth

► This is a specific 15-week benefit for special benefits includes sickness and maternity,
►and may start up to 12 weeks before the baby’s due date and end as late as 17 weeks after the child’s birth.

Question 17

Workers’ Compensation

Answer 17

is an income replacement program administered by each of the provinces that provides benefits in the event of a workplace accident or incident.

► Participation in WCB is mandatory and fully paid by the employer.

►Benefits include short- and long-term disability income, as well as rehabilitation services and survivor benefits. There may also be compensation for non-economic loss, including the impact on the quality of life.