Government Benefit Programs

Question 1

GIS/Allowance Eligibility

Answer 1

GIC- over 65 and collecting oas
Allowance - over 60, not old enough to collect buy have spouse who collects

Question 2

CPP Tax Refund

Answer 2

Deduction for employer and credit for employee

Question 3

General Drop out

Answer 3

17% of working years, up to 8 years total. Only applied if 120 months of earnings remain after disability and child drop out years

Question 4

Disability drop out/in

Answer 4

Drop out period of disability (base amount).
Starting in 2024, the enhanced CPP program will drop in additional credits for the time you were disabled from 2019 onward. These credits are equal to 70% of your average earnings in the 6 years before you became disabled which were covered by the CPP enhancement’s YAMPE. This is only for cpp enhancement portion).

Question 5

Child rearing drop out

Answer 5

Drop out years for children up to the month they are seven. Multiple children would be based on month the oldest is born and ending the month the younger child turns seven. Drop in enhanced portion off cpp based on 5 years prior to earnings

Question 6

CPP Post Retirement Impact on Other Contributory years

Answer 6

18-65 (or 60), 39 years after general drop out. Years contributing after 65 and not collecting would replace low years, if higher.

Question 7

Post Retirement Benefit Formula

Answer 7

1/40 (2.5%) of maximum cpp of contributor when they began collecting (lower if before age 65).
CPP Age 65 = 1,000 max cpp when they started collecting and they earn 75% of that amount and client earns 80% of ympe for that year of PRB. PRB = 2.5% * 1000 * 80% = $20. Added jan 1st of following year

Question 8

Cancellation of CPP timeframe

Answer 8

1 year

Question 9

CPP Disability Eligibility

Answer 9

Severe and prolonged, can’t earn more than 5k of employment income, provisions included for those wanting to return to work, must have contributed in 4 of last 6 years, or if contributed for at least 25 years, 3 of the last 6 years. Can’t receive with regular cpp (end at age 65)

Question 10

CPP Disability Amount/Child benefit

Answer 10

Flat amount + 75% of retirement pension (can end up being higher than regular cpp). Chilf paid flate rate benefit up to 18, or 25 if full time student

Question 11

Post Retirement CPP Disability

Answer 11

Between 60-65 and have already collect cpp, will receive flat benefits amount on top of cpp

Question 12

Survivors Benefit (each age bracket)

Answer 12

Age 65 - 60% of the decased’s benefit up to cpp max benefit, assuming survivor retired at 65 (if collecting already)
60-65 - flat dollar amount + 37.5% of benefit up to max at age survivor started cpp
-disabled spouse any age - flat dollar + 37.5% plus disabled cpp benefits up to max disability pension

Question 13

Survivors Benefit Eligiblity

Answer 13

3 years of contributions, once 9 years are achieved, it switches to 1/3 of eligible years or 10 calendar years (need not be consecutive). Can only be paid retroactively for 12 months and can continue if spouse remarries (2x widow can only collect higher of 2 benefits).

Question 14

Children’s survivor benefit

Answer 14

taxed to child, flat amount until a8 or 25 based on full time education

Question 15

CPP Splitting

Answer 15

Based on time together as common law couple or spouses

Question 16

CPP Enhancement YAMPE

Answer 16

4% between ympe and yampe, meant to replace 33% of income and the benefit could be as much as 50% higher

Question 17

Oas Eligibility

Answer 17

At least 10 years of residence at age 18 and onward
-25 Prior to July 1 1977, full oas for 10 years of residency prior to application or 3 years of residency for every 1 year of absence. Can collect as non resident if they have over 20 years residency, if not, benefits stop 6 months after leaving country

Question 18

GIS

Answer 18

For a couple, the GIS benefits are based on family income. (Family income is the income for a couple,
including both married and common-law couples.) If the spouse is not eligible for OAS benefits, then the
GIS recipient would use a clawback based on a sliding scale, which is actually quite complex, and varies
depending on the exact amount of income. The clawback is normally in the range of 25%, so every dollar of
income (again, an exemption applies to OAS income and the first $5,000 per person of employment income)
up to $24,624 reduces the GIS amount by about $.25.
If we have a married (or common-law) couple in which both are OAS eligible, then the GIS benefit is
less generous. The maximum in that case is $553.28 per person. The annual maximum of $6,765.36 is
reduced by $.25 for every dollar of family income. For a couple, there is a higher rate of clawback on the first
$7,936 of annual income per spouse.
For exam purposes, if you encounter a question with a GIS clawback calculation, it’s safe to assume a
$.50 clawback for a single person and a $.25 clawback for a couple per dollar of non-exempt income. Single person clawback is between .42 and .53 per dollAR OF NON EXEMPT.

Question 19

GIS

Answer 19

5k of employment income excluded for single person. each person can use in couple scenario. only half of income (50%) between 5k and 15k is clawed back for single person. tax-free. max personal income is 21k and max couple income is 28k

Question 20

allowance

Answer 20

between 60-65. 5k employment exempt and 5k-15k at half the clawback rate. clawed back at rate of .75 per dollar until the amount of clawback matches then current oas amount. .25 for every dollar above that.

Question 21

EI Eligibility and Benefit

Answer 21

based on rates of employment in region and hours worked over previous 52 weeks. 55% of earned income up to a maximum (595 in 2021). working with ei could generate up to 90% of regular income. 50% clawback up to that threshold, then 100% after. EI premiums are currently set at $1.58 for every $100 of earnings, to a maximum of $56,300 of earnings.The employer contributes $1.40 for every $1.00
of employee premiums paid, to a maximum of $1,245.36. 14-45 week benefit period.one week waiting period. 26 weeks for illness/sickness benefits.

Question 22

EI Circumstances

Answer 22

Regular, maternity, parental, sickness, compassionate care, caregiver (adult family member), critically ill children

Question 23

WSIB Entitlement, Death and Disability

Answer 23

Tax free benefits. Equal to after tax income if earning between 55k-80k. Death benefits of 1-2 years of salary plus potential income stream.

Question 24

Provincial Disability

Answer 24

1k-1.5k per month. usually need annual income of 25k-30k or less and assets of between 5k-100k or less

Question 25

Canada Child Benefit

Answer 25

36k first threshold 79k second threshold. first threshold has higher clawback. clawback is higher the more kids you have. 3322 extra oer year for disabled child. lower clawback is applied for disability portion and only starts at 79kl bracket

Question 26

For a married or common-law person, the amount is increased by $155 per child under the age of 18
living with the parent. The amount is reduced by 5% for every dollar of family net income beyond
$38,507. The credit is only payable to one spouse, not to both. Whichever one applies will receive it.
Because the benefit calculation is based on family income, it does not matter which spouse actually
applies for the benefit. A single person with children will calculate the benefit using exactly the same
method.