Government Benefit Programs Flashcards
GIS/Allowance Eligibility
GIC- over 65 and collecting oas
Allowance - over 60, not old enough to collect buy have spouse who collects
CPP Tax Refund
Deduction for employer and credit for employee
General Drop out
17% of working years, up to 8 years total. Only applied if 120 months of earnings remain after disability and child drop out years
Disability drop out/in
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).
Child rearing drop out
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
CPP Post Retirement Impact on Other Contributory years
18-65 (or 60), 39 years after general drop out. Years contributing after 65 and not collecting would replace low years, if higher.
Post Retirement Benefit Formula
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
Cancellation of CPP timeframe
1 year
CPP Disability Eligibility
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)
CPP Disability Amount/Child benefit
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
Post Retirement CPP Disability
Between 60-65 and have already collect cpp, will receive flat benefits amount on top of cpp
Survivors Benefit (each age bracket)
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
Survivors Benefit Eligiblity
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).
Children’s survivor benefit
taxed to child, flat amount until a8 or 25 based on full time education
CPP Splitting
Based on time together as common law couple or spouses
CPP Enhancement YAMPE
4% between ympe and yampe, meant to replace 33% of income and the benefit could be as much as 50% higher
Oas Eligibility
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
GIS
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.
GIS
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
allowance
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.
EI Eligibility and Benefit
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.
EI Circumstances
Regular, maternity, parental, sickness, compassionate care, caregiver (adult family member), critically ill children
WSIB Entitlement, Death and Disability
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.
Provincial Disability
1k-1.5k per month. usually need annual income of 25k-30k or less and assets of between 5k-100k or less
