GOVERNMENT BENEFIT PLANS (PG. 111-119)

Question 1

EMPLOYMENT INSURANCE (EI)

Answer 1

A program administered by the GOC to provide benefits to insured people who are:

1) Unemployed
2) On maternity/parental leave
3) Caring for a critically ill person/providing end-of-life care
4) Off work due to sickness

Question 2

REGISTERED EDUCATION SAVINGS PLAN (RESPs)

Answer 2

Designed to help families save for the future education costs of one or more beneficiaries

Question 3

SUBSCRIBER (RESP)

Answer 3

Responsible for opening the plan

Question 4

PROMOTER (RESP)

Answer 4

The organization that administers the RESP

Question 5

BENEFICAIRY(S) (RESP)

Answer 5

Receives the funds while pursuing post-secondary education

Question 6

FAMILY PLAN (RESP)

Answer 6

Multiple children related to the subscriber by blood

Question 7

NON-FAMILY PLAN (RESP)

Answer 7

Beneficiary does not meet the CRA’s definition of blood relationship

Question 8

GROUP RESP

Answer 8

Ideals if the subscriber is not good with managing money or incapable of understanding how to make investment decisions

Question 9

SPECIFIED RESP PLAN

Answer 9

Provides additional benefits that are not available through regular RESPs (beneficiary has a disability)

Question 10

EDUCATIONAL ASSISTANCE PAYMENTS (EAP)

Answer 10

A RESP withdrawal option that provides a combination of grants and any growth earned on the grants (paid out when the beneficiary pursues post-secondary education)

Question 11

RETURN OF CONTRIBUTIONS (ROC)

Answer 11

A refund of contributions the subscriber made throughout the life of the plan

Question 12

ACCUMULATED INCOME PAYMENTS (AIP)

Answer 12

Consists of the growth earned on any contributions and the growth earned on any grants or bonds throughout the life of the RESP

Question 13

REGISTERED DISABILITY SAVINGS PLAN (RDSP)

Answer 13

A tool that individuals with disabilities can integrate into long-term planning and augment their savings

Question 14

HOLDER (RDSP)

Answer 14

The individual opening the plan on behalf of the beneficiary

Question 15

BENEFICIARY (RDSP)

Answer 15

The individual who qualifies for the disability tax credit and ultimately benefits from the plan

Question 16

DISABILITY ASSISTANCE PAYMENT (DAP)

Answer 16

The beneficiary can access the funds from the RDSP via unschedule payments

Question 17

LIFETIME DISABILITY ASSISTANCE PAYMENT (LDAP)

Answer 17

Scheduled payments, much like a annuity, providing income to the recipient throughout his/her lifetime

Question 18

PROPORTIONATE REPAYMENT RULE

Answer 18

Limits the withdrawal amounts that can be received before paying back a portion of the grants (generous grants offered through RDSPs)

Question 19

SHORTENED LIFE EXPECTANCY

Answer 19

CRA definition translates to 5 years or less

Question 20

SPECIFIED DISABILITY SAVINGS PLAN (SDSP)

Answer 20

Offers greate flexibility to the beneficiary in terms of drawing funds; withdrawals become exempt from the 10-year vesting grant rule