W1

Question 1

What does OAS stand for?

Answer 1

Old age security.

Question 2

What is the payment reduction per each month if someone starts using its CPP before 65?

Answer 2

0.6%

Question 3

What is the payment increase per each month if someone starts using its CPP after 65?

Answer 3

0.7%

Question 4

What is the payment reduction per each month if someone starts using its OAS before 65?

Answer 4

It cannot be collected early.

Question 5

What is the payment increase per each month if someone starts using its OAS after 65?

Answer 5

0.6% with a maximum of 36%

Question 6

What is (currently) the maximum CPP payment if someone contributed the maximum amount for 39 calendar years between 18-65?

Answer 6

$1,306

Question 7

How do you calculate the contribution to the CPP for an individual?

Answer 7

You take either the Max. contribution or the person’s income (- $3,500 of the Year’s basic exemption YBE), whichever is lower, to calculate the contribution.

Question 8

What does GIS stand for?

Answer 8

Guaranteed Income Supplement.

Question 9

How many years (after being 18) does a person need to live in Canada to be eligible for OAS inside Canada?

Answer 9

10 years.

Question 10

How many years (after being 18) does a person need to live in Canada to be eligible for OAS outside Canada?

Answer 10

20 years.

Question 11

How does the OAS clawback work?

Answer 11

15% of the income over $75,910 is deducted from OAS (divided in monthly clawbacks).

Question 12

Can you receive GIS living outside Canada?

Answer 12

No, must reside in Canada. (It would be payable for 6 months and then cease, the person can apply to restart the benefit once in Canada again).

Question 13

How does GIS clawback work?

Answer 13

The GIS clawback for the current year is computed by calculating 50% of the pensioner’s base income for the previous taxation year.

Question 14

What happens (in terms of GIS eligibility or clawback) if a person didn’t need it the previous year but does need it in the current year?

Answer 14

An application can be made to have the GIS clawback computed using the current year’s income.

Question 15

What happens (in terms of GIS eligibility or clawback) if a person doesn’t submit an income tax return by April 30?

Answer 15

GIS benefits would cease.

Question 16

Is the OAS included as base income?

Answer 16

No.

Question 17

Is the CPP included as base income?

Answer 17

Yes.

Question 18

Other incomes that are included as base income are:

Answer 18

RRSP, pension, foreign pension, employment insurance benefits, taxable dividends, taxable capital gains, net rental income, interest income (from bonds, GICs, savings accounts…)

Question 19

Four requirements to be eligible for OAS allowance for survivors are:

Answer 19

Being the spouse or common-law partner, have lived in Canada for 10 years (after 18), being a citizen or PR, being [60-64] inclusive.

Question 20

What is the tax treatment for OAS pensions for income tax purposes?

Answer 20

Is included in the recipient’s taxable income.

Question 21

What is the tax treatment for GIS and allowance for survivors for income tax purposes?

Answer 21

Are subject to a full deduction in computing the recipient’s taxable income, making them effectively tax- free.