{"id":555,"date":"2023-09-03T19:11:02","date_gmt":"2023-09-03T23:11:02","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/?post_type=chapter&#038;p=555"},"modified":"2024-11-28T17:39:20","modified_gmt":"2024-11-28T22:39:20","slug":"government-administered-plans","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/chapter\/government-administered-plans\/","title":{"raw":"Government Administered Plans","rendered":"Government Administered Plans"},"content":{"raw":"Government administered programs relate to publicly funded plans that are administered by the government.\u00a0 Eligible Canadians can obtain financial assistance from the government upon retirement.\u00a0 These government administered plans include the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS).\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Canada Pension Plan (CPP)<\/span>\r\n\r\nRelates to the primary government retirement pension that is issued monthly to qualifying individuals.\u00a0 The funds issued through the CPP plan are taxable when they are received, and assist to replace part of your income upon retirement.\r\n\r\nFor trades workers, both the working individual and employer makes contributions to the Canada Pension Plan every year.\u00a0 Both the individual taxpayer and the employer pay the same amount of CPP (5.95% in 2024) up to an annual limit.\u00a0 Beginning in 2024, a second additional CPP contribution amount is paid on earnings above the annual maximum pensionable earnings (4% in 2024).\u00a0 The amount that the individual pays is directly withheld from one\u2019s pay cheque and remitted to CRA on their behalf.\u00a0 If one has overpaid CPP, potentially due to more than one employer, then an individual can file an Individual Tax and Benefit Return (T1) to claim any qualifying refund.\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Old Age Security (OAS)<\/span>\r\n\r\nRelates to a monthly payment pension from the Canadian government to eligible Canadians aged 65 and older.\r\n\r\nFurther details about <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/old-age-security.html\" target=\"_blank\" rel=\"noopener\">Old Age Security<\/a> can be found at the attached link.\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Guaranteed Income Supplement (GIS)<\/span>\r\n<ul>\r\n \t<li>Relates to an additional taxable benefit on top of Old Age Security for eligible Canadians. An individual applies for GIS at the same time as one applies for Old Age Security pension.<\/li>\r\n \t<li>Criteria for GIS includes being age 65 or older, living in Canada, getting OAS pension, and income is below a certain maximum annual income threshold<\/li>\r\n<\/ul>\r\nFurther details about <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/old-age-security\/guaranteed-income-supplement.html\" target=\"_blank\" rel=\"noopener\">Guaranteed Income Supplement<\/a> can be found at the attached link.\r\n\r\n&nbsp;","rendered":"<p>Government administered programs relate to publicly funded plans that are administered by the government.\u00a0 Eligible Canadians can obtain financial assistance from the government upon retirement.\u00a0 These government administered plans include the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS).<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Canada Pension Plan (CPP)<\/span><\/p>\n<p>Relates to the primary government retirement pension that is issued monthly to qualifying individuals.\u00a0 The funds issued through the CPP plan are taxable when they are received, and assist to replace part of your income upon retirement.<\/p>\n<p>For trades workers, both the working individual and employer makes contributions to the Canada Pension Plan every year.\u00a0 Both the individual taxpayer and the employer pay the same amount of CPP (5.95% in 2024) up to an annual limit.\u00a0 Beginning in 2024, a second additional CPP contribution amount is paid on earnings above the annual maximum pensionable earnings (4% in 2024).\u00a0 The amount that the individual pays is directly withheld from one\u2019s pay cheque and remitted to CRA on their behalf.\u00a0 If one has overpaid CPP, potentially due to more than one employer, then an individual can file an Individual Tax and Benefit Return (T1) to claim any qualifying refund.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Old Age Security (OAS)<\/span><\/p>\n<p>Relates to a monthly payment pension from the Canadian government to eligible Canadians aged 65 and older.<\/p>\n<p>Further details about <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/old-age-security.html\" target=\"_blank\" rel=\"noopener\">Old Age Security<\/a> can be found at the attached link.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Guaranteed Income Supplement (GIS)<\/span><\/p>\n<ul>\n<li>Relates to an additional taxable benefit on top of Old Age Security for eligible Canadians. An individual applies for GIS at the same time as one applies for Old Age Security pension.<\/li>\n<li>Criteria for GIS includes being age 65 or older, living in Canada, getting OAS pension, and income is below a certain maximum annual income threshold<\/li>\n<\/ul>\n<p>Further details about <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/old-age-security\/guaranteed-income-supplement.html\" target=\"_blank\" rel=\"noopener\">Guaranteed Income Supplement<\/a> can be found at the attached link.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"author":1780,"menu_order":10,"template":"","meta":{"pb_show_title":"on","pb_short_title":"Government Administered Plans","pb_subtitle":"","pb_authors":["anne-lee"],"pb_section_license":"cc-by-nc-nd"},"chapter-type":[48],"contributor":[61],"license":[58],"class_list":["post-555","chapter","type-chapter","status-publish","hentry","chapter-type-standard","contributor-anne-lee","license-cc-by-nc-nd"],"part":164,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/users\/1780"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/555\/revisions"}],"predecessor-version":[{"id":1395,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/555\/revisions\/1395"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/parts\/164"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/555\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/media?parent=555"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapter-type?post=555"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/contributor?post=555"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/license?post=555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}