Term
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Definition
| required repayment of Old Age Security benefits from wealthier seniors to the government. |
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Term
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Definition
| a plan by which each spouse of a divorcing couple gets an equal share of pension credits accumulated during their time together |
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Term
| Defined Benefit Pension Plan |
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Definition
| a defined benefit plan states how much an employee can expect to earn in retirement based on a formula that takes into account years of service and highest salary. The company guarantees the benefit based on this formula. |
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Term
| defined contribution pension plan |
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Definition
| a defined contribution plan states how much a person will play in (often marched to some degree by the company). This plan defines the contribution but does not guarantee the outcome. The outcome in retirement will depend on how well the employee's investments do over time. |
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Term
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Definition
| the distance between a person's income and the poverty line. |
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Term
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Definition
| the debate in the 1980's over how to fund public pensions for older Canadians in the future. |
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Term
| income maintenance programs |
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Definition
| income supplement programs such as the Canada and Quebec Pension Plans that help people maintain their pre-retirement income and lifestyle. |
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Term
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Definition
| income supplement programs such as the Old Age Security and the Guaranteed Income Supplement that help people meet their basic needs in retirement |
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Term
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Definition
| a method of increasing pensions linked to increases in the cost of living |
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Term
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Definition
| a pension that moves with workers when they change jobs |
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Term
| Registered Retirement Savings Plans (RRSPs) |
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Definition
| a government plan that allows people to save money for their future pension without paying income tax on the money protected within the RRSP. The pension is taxed when it is withdrawn in retirement. The taxes are deferred to a time when the person has a lower income and is in the lower tax rate. |
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Term
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Definition
| A payment plan to which each person contributes a percentage of his or her salary each month. In the care of the CPP/QPP, the payments are credited to individual workers; when they retire, their pension will depend on how much they paid in to the plan. |
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Term
| Tax-Free Savings Accounts (TFSAs) |
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Definition
| a program that allows Canadians age 18 or over to put-up to $5000 a year into a savings account. These dollars will be allowed to grow tax-free and will not be taxed when taken out. |
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Term
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Definition
| (also called pay-as-you-go-plan) money paid into the plan goes to pay the pensions of retired plan members today. The CPP/Qpp also works like a transfer plan. |
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Term
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Definition
| the idea that everyone in Canada has a right to a public pension regardless of his or her income. |
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Term
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Definition
| workers with a fully vested pension have credit for their total pension contributions (their own and their employer's contribution)even if they move from one employer to another. |
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