CPP/OAS Gov Plans

Question 1

How much does someone have to contribute to CPP (ee)

Answer 1

5.95%

Question 2

What does disability periods mean?

Answer 2

Disability periods are removed from calculation. Can drop out or in

Question 3

What are child rearing years?

Answer 3

Can opt out of time you took with child under 7. Can opt in or out

Question 4

What is the general drop out?

Answer 4

Lowest 17%. Or if 65, lowest 8 years

Question 5

What’s the penalty for taking CPP at 60?

Answer 5

Reduction of 0.6% per month

Question 6

What’s the benefit of delaying CPP?

Answer 6

Increase of 0.7% per month

Question 7

What’s the PRB?

Answer 7

When you take CPP at 60 but Keep working. You must pay into it until 65. This creates a a new benefit each year

Question 8

What constitutes CPP disability?

Answer 8

• becomes disabled with severe and prolonged disability
• must have paid into CPP 4/6 years
• higher than regular CPP
• can’t be receiving both
• flat rate of 510 then 75% of regular CPP

Question 9

What is the survivor benefit for someone 65+ and collecting their own cpp?

Answer 9

Their own CPP+60% of up to max (deceased benefit at 65)

Question 10

What is the survivor benefit of someone 65+ and not collecting CPP?

Answer 10

60% of deceased

Question 11

What is the survivor benefit of someone age 60-65 and collecting their own CPP?

Answer 11

Flat amount + 37.5% up to max (when contributor started taking it)

Question 12

What is the survivor benefit of someone under 60 or 60-65 and not collecting CPP?

Answer 12

Flat amount + 37.5%

Question 13

What is the survivor benefit for a disabled spouse of a deceased CPP contributor?

Answer 13

Flat amount + 37.5% + their own CPP-D up to max

Question 14

What is the CPP death benefit?

Answer 14

2.500

Question 15

What period does pension splitting apply ?

Answer 15

Time together

Question 16

Can CPP credits be split above YMPE?

Answer 16

No

Question 17

Who is eligible for OAS?

Answer 17

Resident of Canada
Min 10 years of residency
At least 65

Question 18

When does someone lose their GIS with eligible income?

Answer 18

Single person about 19,500

Couple about 26,000

Question 19

What is a strategy to not lose GIS?

Answer 19

Take more RRIF out (up to lowest bracket) and move excess to TFSA/non reg to bring income down annually

Question 20

What income claws back GIS?

Answer 20

Investment income
RRIF/LIF/RRSP
Pension income
CPP

Question 21

How do you calculate PRB?

Answer 21

CPP monthly benefit x 2.5%

This gives you the lifetime monthly benefit for PRB indexed to inflation

Question 22

How do you calculate Max CPP benefit?

Answer 22

Average of last 5 years x 25%

Current year and last 4 years

Question 23

When would one get full OAS?

Answer 23

40 years of residency

Question 24

How is OAS reduced if you don’t have the full 40 years of residency?

Answer 24

2.5% for every year less than 40

Question 25

What’s the benefit of waiting to take OAS?

Answer 25

Monthly benefit of 0.6%

Question 26

Does OAS provide survivor, disability if child benefits? Or income splitting?

Answer 26

No

Question 27

What is the OAS clawback rate?

Answer 27

15% 0.15 on every dollar earned above about 80k

Fully clawed back at about 130k

Question 28

Can someone receive OAS benefits if they live in a different country?

Answer 28

Yes, unless they have less than 20 years of Canadian residency which they can only collect 6 months worth

Question 29

What are the GIS clawback amounts?

Answer 29

0. 5 clawback for single person
1. 25 for couple

Per dollar of non Exempt income (after first 5k and OAS annual amount )

Question 30

At what age can one apply for the allowance?

Answer 30

Between 60-65 and not receiving any other benefits

Question 31

Who is eligible for the allowance?

Answer 31

Spouse must be eligible for GIS

Question 32

How are GIS and Allowance taxed?

Answer 32

They are Tax free, unlike OAS

Question 33

How are CPP contributions taxed and how are CPP benefits taxed?

Answer 33

For employee - contributions create tax credit
For employer - tax deduction

Benefits are taxable income

Question 34

At what amount is the allowance fully clawed back?

Answer 34

About 34k

Question 35

What is the EI benefit?

Answer 35

55% of earned income to a max of 595 per week.

Question 36

Are EI benefits taxable?

Answer 36

Yes and taxes are withheld

Question 37

What’s the max EI premiums?

Answer 37

1.58 per 100 to a max of 56,300

Max contributions 889

Question 38

What are the options for employers regarding EI?

Answer 38

They can opt in or out.

Can only receive maternity, compassionate care, sickness

Question 39

How is workers comp taxed?

Answer 39

Tax free

Question 40

How is the child Canada benefit taxed?

Answer 40

Tax free

Question 41

Can you split CPP?

Answer 41

No, but you can pension share starting at age 60 which is almost the same thing. It’s pro rated on contribution history