Module 2

Question 1

What year was CPP & QPP extablished?

Answer 1

1966

Question 2

True or False? Q - CPP/QPP act as an insurance plan, providing disability and survivor pension to those who qualify?

Answer 2

True

Question 3

What is the CPP Criteria?

Answer 3

Age and how long you paid into CPP

Question 4

Do International Social Security Arrangements exist?

Answer 4

Yes - Periods of contributions to other countries programs can be used towards CPP if they are working in Cda and contributing to CPP and are sent by the ER to work abroad temporarily.
The agreement may 1. allow the EE to keep contributing and have the periods of work abroad count as residence.
2. Be exempt from contributing to other country’s social security system.

Question 5

How are CPP/QPP funded?

Answer 5

Unlike OAS, CPP/QPP are not funded through general tax revene. Contribution rates are actuarilly determined and contributions are made by EE and ER, and Self-Employed. NOTE: QPP contributions are slightly higher

Question 6

Are CPP benefits automatically paid?

Answer 6

No, you must apply.
In 2019, changes resulted in proactive enrollment of CPP contributors who are 70 year or older. Can opt out for 12 months before it is paid to contributor. Paid for a lifetime.

Question 7

3 provisions CPP/QPP allow that a normal pension would not?

Answer 7

1. Exclude periods of low income i.e mat leave, illness or EI
2. Assign portion of the benefit to spouse or common-law
3. continue working and contributing and accumulating additional benefits while collecting

Question 8

What month is CPP/QPP adjusted and based on what?

Answer 8

January (annually)
Adjusted with CPI each year
If CPI is negative, no changes are made

Question 9

What benefits are Survivors entitled to?

Answer 9

• Lump sum pmt to estate, will, or person resp for funeral costs, survivor or next of kin (in that order)
• Monthly Benefit to spouse/common law
• Monthly Benefit to Children under 18 or 25 if student

Question 10

What benefits are available if Disabled?

Answer 10

Monthly disability to contributors under 65

Monthly Contributor’s child benefit (under 18 or 25 if student)

Question 11

What is a Survivor?

Answer 11

Married to contributor at time of death or common law
Surviving Spouse must:
1.reached age 65
2.If not age 65, than:
- reached 35 years old at the time of death,
- was a surviving spouse with dep. children at the time of death or
-is disabled

Question 12

A Crown Corporation entrusted with investing and cash management services to the CPP.

Answer 12

Canada Pension Plan Investment Board (CPPIB)

• operates independently of CPP and at arm;s length fm Federal and Provincial govt that are jointly responsible for CPP
• This board NOT govt approves investment policy’s, makes decisions, and highers CEO’s
• Directors are appointed by Feberaly FINANCE Minister - 3yr term

Question 13

The corporation that is responsible for investing revenues collected over and above those required by Retraite Quebec for the immediate payment of benefits and administrations costs.

Answer 13

Caisse de depot et placement du Qubec (Caisse)

Question 14

An occupation that provides an individual with earnings equal to or greater than the amount that equals 12 times the maximum disability pension amount.

Answer 14

Substantially gainful employment

Question 15

A monthly benefit payable to contributors who are under the age of 65 and who, under the plans’ definitions, are disabled and have met the minimum qualifying period.

Answer 15

Disability pension

Question 16

A monthly benefit paid to an individual who was either married or in a common law relationship with the contributor at the time of the contributor’s death

Answer 16

Survivor’s pension

Question 17

A monthly benefits paid to eligible contributors who have voluntarily withdrawn from the workforce and are at least 60 years old.

Answer 17

Retirement pension

Question 18

Under CPP, provisions that allow an individual aged 65 or older who started receiving his or her CPP pension and is continue to work to either “opt out” of CPP or continue to contribute and accumulate an additional CPP benefit.

Answer 18

Post-retirement benefits

Additional benefit added to a contributors current ret benefits

Question 19

Under the CPP, this period is generally 4-6 calendar years that are wholly or partly within an individual’s contributory period. Under QPP, this period is generally 2 of the last 3 years that are included.

Answer 19

Minimum Qualifying Period

Question 20

A funding arrangement whereby the cost of new or higher benefits would be paid as the benefit was earned, and any costs associated with benefits that were paid but not earned would be amortized.

Answer 20

Incremental full funding

Question 21

The benefit that a survivor with dependent children is entitled to receive under the CPP for each dependent child

Answer 21

Orphan’s benefit

Question 22

Lump-sum benefit that is six times the amount of the deceased contributor’s monthly retirement pension, to a max of $2,500

Answer 22

Death benefit

Question 23

A fixed rate amount payable to each child of an individual who has qualified for the CPP/QPP disability pension

Answer 23

Disabled contributor’s child benefit

Question 24

Are CPP disability benefits Taxable

Answer 24

yes