Chapter 4: Government Benefit Programs Flashcards
Is the maximum CPP benefit and OAS indexed the same?
No. Max CPP based on YMPE (tied to increases in the average industrial wage). OAS based on CPI
Is CPP contributory or non-contributory?
Contributory
Is OAS contributory or non-contributory?
Non-contributory
What is a means-tested clawback? Provide an example.
Clawback based on income. Once income is above a certain threshold, the benefit amount will decrease. Ex. OAS or GIS clawback
What is an asset-tested clawback? Provide an example.
Clawback based on your level of assets. Once your assets are above a certain threshold, the benefit amount will decrease. Ex. ODSP eligibility
What is considered a common-law relationship?
Living together in a conjugal relationship for more than 12 months, or two people living together who have a child together
How much do employees contribute to CPP?
a % of the amount of income between the YBE and the YMPE
3 drop out provisions for CPP
General drop out (lowest 17%), child rearing years, periods of disability
Early CPP reduction
0.6% per month
Late CPP increase
0.7% per month
What is the CPP post-retirement benefit?
A benefit for those who continue to contribute to CPP while collecting CPP retirement.
Definition of disabled for CPP disability?
Severe and prolonged
Minimum contributions for CPP disability:
4 out of last 6 years. Or if contributed for 25 years - 3 our of the last 6 years
What is the PRDB?
Post retirement disability benefit. A benefit for people who are U65, collecting CPP-Ret, but found disabled. It is essentially a “top-up” so they will get roughly the same amount they would’ve got if they were receiving CPP-Dis
CPP survivor benefit if: 65+ and collecting CPP retirement
Their own CPP + 60% of the deceased contributor’s benefit, up to the CPP maximum
CPP survivor benefit if: 65+ but not collecting CPP retirement
60% of the deceased contributor’s benefit
CPP survivor benefit if: Age 60-65 and receiving CPP
Flat dollar amount + 37.5% of the deceased contributor’s CPP benefit up to the CPP maximum based on the age at which the survivor started CPP
CPP survivor benefit if: Under 60 or age 60-65 and not collecting CPP
Flat dollar amount + 37.5% of the deceased contributor’s CPP benefit
CPP survivor benefit if: A disabled spouse of a deceased contributor (any age)
Flat dollar amount + 37.5% of the deceased contributor’s CPP benefit + the disabled person’s own CPP-Dis benefits, up to a maximum
Late OAS increase
0.6% per month deferred
How to be eligible for OAS:
Must be at least 65, and have a minimum of 10 years of residency starting at age 18
Years of residency required to receive a full OAS benefit
40 years between 18 and 65
How much is the OAS clawback?
$0.15 for every dollar above a certain threshold (79,845)
What is GIS?
Guaranteed income supplement. For low-income individuals collecting OAS. Means-tested benefit.
What is excluded from the clawback calculation for GIS?
OAS income, first $5,000 of employment/self-employment income
GIS clawback amount (assumed for exam - actual clawback is a sliding scale):
Single: $0.50 per dollar of income. Couple $0.25 per dollar of family income
What is the Allowance?
A program designed to fill a gap in the OAS program. For the younger spouse who is ineligible for OAS/GIS due to their age.
What is the CPP clawback?
There isn’t one…
