Chapter 4: Government Benefit Programs

Question 1

Is the maximum CPP benefit and OAS indexed the same?

Answer 1

No. Max CPP based on YMPE (tied to increases in the average industrial wage). OAS based on CPI

Question 2

Is CPP contributory or non-contributory?

Answer 2

Contributory

Question 3

Is OAS contributory or non-contributory?

Answer 3

Non-contributory

Question 4

What is a means-tested clawback? Provide an example.

Answer 4

Clawback based on income. Once income is above a certain threshold, the benefit amount will decrease. Ex. OAS or GIS clawback

Question 5

What is an asset-tested clawback? Provide an example.

Answer 5

Clawback based on your level of assets. Once your assets are above a certain threshold, the benefit amount will decrease. Ex. ODSP eligibility

Question 6

What is considered a common-law relationship?

Answer 6

Living together in a conjugal relationship for more than 12 months, or two people living together who have a child together

Question 7

How much do employees contribute to CPP?

Answer 7

a % of the amount of income between the YBE and the YMPE

Question 8

3 drop out provisions for CPP

Answer 8

General drop out (lowest 17%), child rearing years, periods of disability

Question 9

Early CPP reduction

Answer 9

0.6% per month

Question 10

Late CPP increase

Answer 10

0.7% per month

Question 11

What is the CPP post-retirement benefit?

Answer 11

A benefit for those who continue to contribute to CPP while collecting CPP retirement.

Question 12

Definition of disabled for CPP disability?

Answer 12

Severe and prolonged

Question 13

Minimum contributions for CPP disability:

Answer 13

4 out of last 6 years. Or if contributed for 25 years - 3 our of the last 6 years

Question 14

What is the PRDB?

Answer 14

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

Question 15

CPP survivor benefit if: 65+ and collecting CPP retirement

Answer 15

Their own CPP + 60% of the deceased contributor’s benefit, up to the CPP maximum

Question 16

CPP survivor benefit if: 65+ but not collecting CPP retirement

Answer 16

60% of the deceased contributor’s benefit

Question 17

CPP survivor benefit if: Age 60-65 and receiving CPP

Answer 17

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

Question 18

CPP survivor benefit if: Under 60 or age 60-65 and not collecting CPP

Answer 18

Flat dollar amount + 37.5% of the deceased contributor’s CPP benefit

Question 19

CPP survivor benefit if: A disabled spouse of a deceased contributor (any age)

Answer 19

Flat dollar amount + 37.5% of the deceased contributor’s CPP benefit + the disabled person’s own CPP-Dis benefits, up to a maximum

Question 20

Late OAS increase

Answer 20

0.6% per month deferred

Question 21

How to be eligible for OAS:

Answer 21

Must be at least 65, and have a minimum of 10 years of residency starting at age 18

Question 22

Years of residency required to receive a full OAS benefit

Answer 22

40 years between 18 and 65

Question 23

How much is the OAS clawback?

Answer 23

$0.15 for every dollar above a certain threshold (79,845)

Question 24

What is GIS?

Answer 24

Guaranteed income supplement. For low-income individuals collecting OAS. Means-tested benefit.

Question 25

What is excluded from the clawback calculation for GIS?

Answer 25

OAS income, first $5,000 of employment/self-employment income

Question 26

GIS clawback amount (assumed for exam - actual clawback is a sliding scale):

Answer 26

Single: $0.50 per dollar of income. Couple $0.25 per dollar of family income

Question 27

What is the Allowance?

Answer 27

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.

Question 28

What is the CPP clawback?

Answer 28

There isn’t one…