IFIC (Unit 9 Quiz) UPDATED ACTUAL
Exam Questions and CORRECT Answers
Two government-Sponsored Retirement Programs
1. Old Age Security (OAS)
- Funded by tax revenue
Means test: when a clients income exceeds a minimum, OAS benefits will be reduced (or
"clawed back")
2. Canada Pension Plan (CPP)/Québec Pension Plan (QPP)
- Federal program designed to provide: retirement/survivor/disability/death benefits
- Mandatory contributions made by workers and their employers - CORRECT ANSWER -
Two government-Sponsored Retirement Programs
1. Old Age Security (OAS)
- Funded by ___________
Means test: when a clients income exceeds a minimum, OAS benefits will be reduced (or
"clawed back")
2. Canada Pension Plan (CPP)/Québec Pension Plan (QPP)
- Federal program designed to provide: retirement/survivor/disability/death benefits
- Mandatory contributions made by __________ and ____________
Means test:
- When a clients income exceeds a minimum, OAS benefits will be reduced
- If income reaches a pre-determined maximum, any earned OAS pension must be paid back -
CORRECT ANSWER - _____________ test:
- When a clients income exceeds a minimum, OAS benefits will be reduced
- If income reaches a pre-determined maximum, any earned OAS pension must be paid back
Four public pension benefits (of AOS)
1. Old Age Security (OAS) pension
,- Monthly payment (taxable income)
- Deferring OAS: Delaying pension payment (for up to 5 years) for a higher monthly amount
(0.6% monthly increase, max of 36% at 70 yo)
2. Guaranteed Income Supplement (GIS)
- Tax-free benefit and is paid on top of the OAS pension
- GIS payments are reduced by $1 for every $2 of base income
3. Allowance
- Available to low-income individuals aged 60 to 64 (stops after 65th birthday)
- Must be spouse of a GIS recipient
4. Allowance for the Survivor (tax free)
- All conditions of "allowance," but spouse does not receive OAS or GIS due to incarceration
- Allowance for survivor payments stop if the individual remarries - CORRECT
ANSWER - Four public pension benefits (of AOS)
1. Old Age Security (OAS) pension
- Monthly payment (taxable income)
- Deferring OAS: Delaying pension payment (for up to _______________ years) for a higher
monthly amount (0.6% monthly increase, max of 36% at 70 yo)
2. Guaranteed Income Supplement (GIS)
- Tax-free benefit and is paid on top of the OAS pension
- GIS payments are reduced by $1 for every $2 of base __________________
3. Allowance
- Available to low-income individuals aged ____________ to 64 (stops after 65th birthday)
- Must be spouse of a GIS recipient
4. Allowance for the Survivor (tax free)
- All conditions of "allowance," but spouse does not receive OAS or GIS due to incarceration
- Allowance for survivor payments stop if the individual remarries
Canada Pension Plan (CPP)/Québec Pension Plan (QPP) is Federal program designed to provide
4 things:
1. Retirement benefits
, - Can be collected between ages 60 and 70 (not necessary to stop working to receive a retirement
pension)
- If collected before 65, pension benefits are decreased
- If collected after 65, pension benefits are increased
2. Survivor benefits
- paid to the estate, surviving spouse and dependent children of a deceased contributor
3. Disability benefits
- CPP contributors who are no longer able to work
4. Death benefits
- lump sum death benefit is payable to the estate of a deceased contributor. - CORRECT
ANSWER - Canada Pension Plan (CPP)/Québec Pension Plan (QPP) is Federal program
designed to provide 4 things:
1. Retirement benefits
- Can be collected between ages 60 and 70 (not necessary to stop working to receive a retirement
pension)
- If collected before 65, pension benefits are ___________________
- If collected after 65, pension benefits are ____________________
2. Survivor benefits
- paid to the estate, surviving spouse and dependent children of a deceased contributor
3. Disability benefits
- CPP contributors who are no longer able to work
4. Death benefits
- lump sum death benefit is payable to the estate of a deceased contributor.
Self-employed individuals are required to make both the employee and the employer portions of
the contribution to Canada Pension Plan (CPP)/Québec Pension Plan (QPP) - CORRECT
ANSWER - Self-employed individuals are required to make both the employee and the
employer portions of the contribution to _______________________
(CPP)/____________________ (QPP)
Exam Questions and CORRECT Answers
Two government-Sponsored Retirement Programs
1. Old Age Security (OAS)
- Funded by tax revenue
Means test: when a clients income exceeds a minimum, OAS benefits will be reduced (or
"clawed back")
2. Canada Pension Plan (CPP)/Québec Pension Plan (QPP)
- Federal program designed to provide: retirement/survivor/disability/death benefits
- Mandatory contributions made by workers and their employers - CORRECT ANSWER -
Two government-Sponsored Retirement Programs
1. Old Age Security (OAS)
- Funded by ___________
Means test: when a clients income exceeds a minimum, OAS benefits will be reduced (or
"clawed back")
2. Canada Pension Plan (CPP)/Québec Pension Plan (QPP)
- Federal program designed to provide: retirement/survivor/disability/death benefits
- Mandatory contributions made by __________ and ____________
Means test:
- When a clients income exceeds a minimum, OAS benefits will be reduced
- If income reaches a pre-determined maximum, any earned OAS pension must be paid back -
CORRECT ANSWER - _____________ test:
- When a clients income exceeds a minimum, OAS benefits will be reduced
- If income reaches a pre-determined maximum, any earned OAS pension must be paid back
Four public pension benefits (of AOS)
1. Old Age Security (OAS) pension
,- Monthly payment (taxable income)
- Deferring OAS: Delaying pension payment (for up to 5 years) for a higher monthly amount
(0.6% monthly increase, max of 36% at 70 yo)
2. Guaranteed Income Supplement (GIS)
- Tax-free benefit and is paid on top of the OAS pension
- GIS payments are reduced by $1 for every $2 of base income
3. Allowance
- Available to low-income individuals aged 60 to 64 (stops after 65th birthday)
- Must be spouse of a GIS recipient
4. Allowance for the Survivor (tax free)
- All conditions of "allowance," but spouse does not receive OAS or GIS due to incarceration
- Allowance for survivor payments stop if the individual remarries - CORRECT
ANSWER - Four public pension benefits (of AOS)
1. Old Age Security (OAS) pension
- Monthly payment (taxable income)
- Deferring OAS: Delaying pension payment (for up to _______________ years) for a higher
monthly amount (0.6% monthly increase, max of 36% at 70 yo)
2. Guaranteed Income Supplement (GIS)
- Tax-free benefit and is paid on top of the OAS pension
- GIS payments are reduced by $1 for every $2 of base __________________
3. Allowance
- Available to low-income individuals aged ____________ to 64 (stops after 65th birthday)
- Must be spouse of a GIS recipient
4. Allowance for the Survivor (tax free)
- All conditions of "allowance," but spouse does not receive OAS or GIS due to incarceration
- Allowance for survivor payments stop if the individual remarries
Canada Pension Plan (CPP)/Québec Pension Plan (QPP) is Federal program designed to provide
4 things:
1. Retirement benefits
, - Can be collected between ages 60 and 70 (not necessary to stop working to receive a retirement
pension)
- If collected before 65, pension benefits are decreased
- If collected after 65, pension benefits are increased
2. Survivor benefits
- paid to the estate, surviving spouse and dependent children of a deceased contributor
3. Disability benefits
- CPP contributors who are no longer able to work
4. Death benefits
- lump sum death benefit is payable to the estate of a deceased contributor. - CORRECT
ANSWER - Canada Pension Plan (CPP)/Québec Pension Plan (QPP) is Federal program
designed to provide 4 things:
1. Retirement benefits
- Can be collected between ages 60 and 70 (not necessary to stop working to receive a retirement
pension)
- If collected before 65, pension benefits are ___________________
- If collected after 65, pension benefits are ____________________
2. Survivor benefits
- paid to the estate, surviving spouse and dependent children of a deceased contributor
3. Disability benefits
- CPP contributors who are no longer able to work
4. Death benefits
- lump sum death benefit is payable to the estate of a deceased contributor.
Self-employed individuals are required to make both the employee and the employer portions of
the contribution to Canada Pension Plan (CPP)/Québec Pension Plan (QPP) - CORRECT
ANSWER - Self-employed individuals are required to make both the employee and the
employer portions of the contribution to _______________________
(CPP)/____________________ (QPP)
