chapter 8- finances and economics Flashcards

1
Q

the debate in the 1980s over how to fund public pensions for older Canadians in the future.

A

Great pension debate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

the idea that everyone in Canada has a right to a public pension regardless of his or her income

A

Universality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

programs such as the Old Age Security and the Guaranteed Income Supplement that help people meet their basic needs in retirement.

A

Income security programs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

programs such as the Canada and Quebec pension plans that help people maintain their preretirement income and lifestyle

A

Income maintenance programs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

a required repayment of Old Age Security benefits from wealthier seniors to the government

A

Clawback

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

a payment plan to which each person contributes a percentage of his or her salary each month; in the case of the CPP/QPP, the payments are credited to individual workers; when they retire, their pension will depend on how much they paid into the plan

A

savings plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

money paid into the plan goes to pay the pensions of retired plan members today

A

Transfer plan (also called a pay-as-you-go plan)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

today’s retirees receive their CPP pensions from workers’ contributions today; workers today will receive their CPP pensions from workers’ contributions in the future; this type of plan requires that each younger generation pay for the pensions of the older generation

A

Pay-as-you-go plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

a pension that moves with workers when they change jobs

A

Portable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

workers with a fully vested pension have credit for their total pension contributions (their own and their employer’s contributions) even if they move from one employer to another

A

vesting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

states how much an employee can expect to earn in retirement based on a formula that takes into account years of service and highest salary; the company guarantees the benefit based on this formula

A

Defined benefit pension plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

states how much a person will pay into their pension account (often matched to some degree by the company); this plan defines the contribution but does not guarantee the outcome; the outcome in retirement will depend on how well the employee’s investments do over time

A

Defined contribution pension plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

a government plan that allows people to save money for their future pension without paying income tax on the money protected within the ___; the savings are taxed when they are withdrawn in retirement; the taxes are deferred to a time when the person has a lower income and is in a lower tax rate.

A

Registered retirement savings plans (RRSPs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

a plan by which each spouse of a divorcing couple gets an equal share of pension credits accumulated during their time together

A

Credit splitting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

a method of increasing pensions linked to increases in cost of living

A

Indexation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

a program that allows Canadians age 18 or over to put up to $5000 a year into a savings account; these dollars will be allowed to grow tax-free and will not be taxed when taken out.

A

Tax-free savings accounts (TFSAs)