Pensions and Benefits Final Exam : June 20th : July 8th

 What is the Old Age Security (OAS) program?

 A) A pension plan provided by private employers

 B) A federal program providing a monthly payment to seniors 65 and older
 C) An investment account for retirement
 D) A health insurance policy for elderly Canadians
 Answer: B) A federal program providing a monthly payment to seniors 65 and older

 What does RRIF stand for?

 A) Registered Retirement Income Fund

 B) Retired Reserve Insurance Fund
 C) Registered Reserve Investment Fund
 D) Retirement Revenue Insurance Fund
 Answer: A) Registered Retirement Income Fund

 What is the primary purpose of a Registered Retirement Savings Plan (RRSP)?

 A) To save for children's education

 B) To save for retirement with tax benefits
 C) To fund a vacation
 D) To pay for health expenses
 Answer: B) To save for retirement with tax benefits

 What is a Supplemental Executive Retirement Plan (SERP)?

 A) A basic retirement plan for all employees

 B) A retirement plan providing additional benefits for executives
 C) A government-funded pension plan
 D) An insurance policy for executives
 Answer: B) A retirement plan providing additional benefits for executives

 What is a Life Income Fund (LIF)?

 A) A fund that provides regular income from retirement savings

 B) An insurance policy for life coverage
 C) A government pension plan
 D) A savings account for education
 Answer: A) A fund that provides regular income from retirement savings

 What is the purpose of critical illness insurance?

 A) To cover daily medical expenses

  B) To provide a lump sum payment if diagnosed with a serious illness
 C) To replace lost income during short-term disability
 D) To pay for retirement expenses
 Answer: B) To provide a lump sum payment if diagnosed with a serious illness

 What is the Guaranteed Income Supplement (GIS)?

 A) A supplement to Employment Insurance (EI)

 B) An additional monthly benefit for low-income OAS recipients
 C) A private pension plan supplement
 D) A health insurance benefit
 Answer: B) An additional monthly benefit for low-income OAS recipients

 What is a "locked-in" retirement account (LIRA)?

 A) An account that allows early withdrawal without penalties

 B) An account where funds cannot be withdrawn until retirement
 C) A health insurance savings account
 D) A non-registered savings account
 Answer: B) An account where funds cannot be withdrawn until retirement

 What does "early retirement" mean in terms of pension benefits?

 A) Retiring before the normal retirement age, often with reduced benefits
 B) Retiring with full benefits before age 55
 C) Receiving benefits while still employed
 D) Retiring with increased benefits due to early service
 Answer: A) Retiring before the normal retirement age, often with reduced benefits

 What is a deferred profit-sharing plan (DPSP)?

 A) A plan where employees receive a share of the company's profits at retirement

 B) A plan that provides health benefits to employees
 C) A government pension plan
 D) A savings plan for educational expenses
 Answer: A) A plan where employees receive a share of the company's profits at
retirement

 What is a pension benefit credit?

 A) The amount of pension benefit accrued to an employee

 B) A tax credit for contributing to a pension plan
 C) An insurance benefit for pensioners
 D) A loan given to pension plan members
 Answer: A) The amount of pension benefit accrued to an employee
 What is a disability waiver of premium?

 A) A waiver for premiums on health insurance due to disability

 B) A waiver that allows continuation of life insurance without premium payments during
disability
 C) A waiver for pension contributions during disability
 D) A waiver for RRSP contributions during disability
 Answer: B) A waiver that allows continuation of life insurance without premium
payments during disability

 What is the purpose of an individual pension plan (IPP)?

 A) To provide a pension plan for self-employed individuals and small business owners
 B) To offer health benefits to individuals
 C) To replace Employment Insurance (EI)
 D) To provide a pension plan for government employees
 Answer: A) To provide a pension plan for self-employed individuals and small
business owners

 What is the "90 Factor" in pension plans?

 A) The age at which pension benefits begin

 B) A formula that combines age and years of service for early retirement eligibility
 C) The percentage of salary used to calculate pension benefits
 D) The number of years required to vest in a pension plan
 Answer: B) A formula that combines age and years of service for early retirement
eligibility

 What is the significance of the term "non-contributory pension plan"?

 A) A pension plan where only employees contribute

 B) A pension plan where only employers contribute
 C) A pension plan that does not require any contributions
 D) A pension plan without tax benefits
 Answer: B) A pension plan where only employers contribute

 What is a "salary deferral arrangement"?

 A) A plan to defer salary to a later date to reduce immediate tax liability

 B) An arrangement for reducing salary in exchange for benefits
 C) A pension plan option
 D) A government savings program
 Answer: A) A plan to defer salary to a later date to reduce immediate tax liability

 What is the main purpose of survivor benefits?

  A) To provide additional income to retirees
 B) To provide financial support to the dependents of a deceased plan member
 C) To offer health insurance to retirees
 D) To increase the pension benefits of surviving plan members
 Answer: B) To provide financial support to the dependents of a deceased plan
member

 What is the "Maximum Pensionable Earnings" (YMPE)?

 A) The highest amount of earnings on which CPP contributions are based

 B) The total amount of pension benefits an employee can receive
 C) The minimum amount of earnings required for pension eligibility
 D) The earnings cap for RRSP contributions
 Answer: A) The highest amount of earnings on which CPP contributions are based

 What is a "spousal RRSP"?

 A) An RRSP owned by one spouse with contributions made by the other spouse
 B) A joint RRSP account for both spouses
 C) An RRSP for single individuals
 D) A government retirement plan
 Answer: A) An RRSP owned by one spouse with contributions made by the other
spouse

 What is a "pension adjustment reversal" (PAR)?

 A) An adjustment to reduce pension benefits

 B) An increase in RRSP contribution room due to reduced pension benefits
 C) A reversal of pension contributions
 D) A tax penalty for early withdrawal of pension funds
 Answer: B) An increase in RRSP contribution room due to reduced pension benefits

 What is the role of a "plan sponsor" in a pension plan?

 A) To provide financial advice to employees

 B) To manage and fund the pension plan
 C) To regulate pension plans at the government level
 D) To act as a consultant for retirees
 Answer: B) To manage and fund the pension plan

 What is an "actuarial valuation" in the context of pension plans?

 A) A calculation to determine the future cost of pension benefits

 B) A financial audit of the pension plan
 C) An insurance policy assessment
 D) A market analysis for investments
  Answer: A) A calculation to determine the future cost of pension benefits

 What is a "phased retirement" option?

 A) A gradual reduction in working hours as one approaches retirement

 B) An immediate cessation of work with full pension benefits
 C) A mandatory retirement age policy
 D) A temporary leave of absence before retirement
 Answer: A) A gradual reduction in working hours as one approaches retirement

 What does "defined benefit" mean in a pension plan?

 A) Benefits are determined by employee contributions and investment performance

 B) Benefits are based on a fixed formula considering salary and service
 C) Benefits are variable and market-dependent
 D) Benefits are determined solely by the employer's discretion
 Answer: B) Benefits are based on a fixed formula considering salary and service

 What is the "normal retirement age" in most pension plans?

 A) Age 55
 B) Age 60
 C) Age 65
 D) Age 70
 Answer: C) Age 65

 What is a "pensionable service"?

 A) The total years an employee has worked

 B) The service period used to calculate pension benefits
 C) The minimum service required to be eligible for a pension
 D) The years of service counted after retirement
 Answer: B) The service period used to calculate pension benefits

 What is an "income replacement ratio"?

 A) The ratio of pension income to pre-retirement income

 B) The ratio of employee contributions to employer contributions
 C) The ratio of current salary to potential pension benefits
 D) The ratio of taxable income to non-taxable income
 Answer: A) The ratio of pension income to pre-retirement income

 What is a "joint and survivor annuity"?

 A) An annuity that provides payments to the retiree and continues to a spouse after death
 B) An annuity that only pays benefits until the retiree's death
  C) An annuity that splits benefits between two retirees
 D) An annuity that includes disability benefits
 Answer: A) An annuity that provides payments to the retiree and continues to a
spouse after death

 What is the "bridge benefit" in a pension plan?

 A) A temporary benefit paid until government benefits start

 B) A permanent increase in pension benefits
 C) A benefit that covers health expenses in retirement
 D) A one-time payment at retirement
 Answer: A) A temporary benefit paid until government benefits start

 What is the "public service pension plan" in Canada?

 A) A pension plan for private sector employees

 B) A pension plan for government employees
 C) A health insurance plan for public service workers
 D) A retirement savings plan for self-employed individuals
 Answer: B) A pension plan for government employees