Class Notes (994,954)
CA (574,205)
INFO 16029 (10)
Boom (10)
Lecture 12

INFO 16029 Lecture 12: Week 12 Finance
Premium

6 Pages
87 Views
Fall 2017

Department
Faculty of Applied Science & Technology
Course Code
INFO 16029
Professor
Boom
Lecture
12

This preview shows pages 1-2. Sign up to view the full 6 pages of the document.
Week 12 Finance
April 3rd 2017
Note takers: Monique and Andrea
PART 1 Andrea
)ts a matching pension. You will notice this later on when you start working more
hours, there is a maximum income you cap CPP on and they leave it at that. CPP
payments will seem to decrease.
S: is it possible to take all the amount off at once
T: of the government pension plan? No
S: you wouldnt want to take that as a lump sum, lots of tax. )f you take it out if that
option is available, it would be considered your income
T: the idea is we as human beings are not great at planning. Living is expensive,
housing is expensive. We arent good at saving, this is a government way to save for
you.
)f anyone is from Quebec, this whole program exists and its called the Quebec
Pension Program.
Another thing: if you make under 30 thousand a year, this is your yearly basic
exemption. You dont pay CPP if you make this. )f you're working full time and
making less than 35 thousand you have problems.
Whos taking their CSC? No one? )f you're taking that you need to know these
figures. Anyone want to start their own company? You get to pay your portion and
the portion for the company. Even if you're self employed.
Disability, survivor and Death Benefits under CPP/QPP
CPP has that same kind of survivor benefit, this is usually for the spouse. There is
also a disability benefit associated with this. If you could no longer work at a job
there is a disability benefit funded through the CPP that will help to support you.
)f that does happen there is a safety net. )f youve been contributing and cant work
anymore there is a pension plan that comes for you.
)t can be more than just a spouse. )ts a dependent, maybe a disabled child who
requires part of that income. )ts not just spouses, but that is most common of
course.
And death benefit, you have to apply for this. )ts part of the CPP program, the idea
behind it was to help people pay for funerals. Maximum  hundred dollars. )ts
find more resources at oneclass.com
find more resources at oneclass.com
been this sum for as long as I can remember. What does a funeral cost these days?
Good luck under . )ts expensive. The  hundred doesnt come close to covering
the funeral but you know this benefit is out there to apply for. It can help a little bit.
Thats CPP, each comprised of four different elements.
S: a funeral cost 4 thousand dollars
T: Let me see the site. I have friends who are funeral directors, that is what they
want to be called.
Employer Pension Plan Benefits
One of the benefits is it grows tax free. One really big benefit is most of the time
companies also contribute. Thats a god deal, if someone wants to fund your
retirement. They are creditor proof as well, in case you were sued. They are
separate from your personal assets.
What you see when you get a job, one thing will be regarding pension plans. Right at
the top it will say what plan it is:
Defined Benefit Pension Plan (DBPP)
The titles they are given is exactly what they are. These used to be very popular,
they are much less so now. If I am a company and you all retire and I give you
$/month. But lets say our company didnt make that much, that market didnt
do well. I promised it to you. We have a problem now, the pension plan is under
funded. That is a significant risk. The company has to come up with that extra
money since we already promised it.
The amount you put in is what is defined. What happens at the end, no one knows.
You have assumptions about inflation, what the market will do, but it is still a guess.
There is no guaranteed benefit amount. The employer is contributing but we dont
know how that investment will perform. We all have different ways of investing.
Your pension at the end depends on how well your investments have done.
Generally when you begin at a place it shows you a form. It will state what the
company contributes to a form. They will show you some pie charts of different
investment profiles. Tick the one you want, and that is how your portion will be
invested. You might be very aggressive who knows.
S: is it the government who pays the pension?
T: for CPP and OAS yes, but right now were looking at employer plans
S2: what if you work for a company who applies for bankruptcy and leaves the
company?
find more resources at oneclass.com
find more resources at oneclass.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Week 12 Finance April 3 2017 Note takers: Monique and Andrea PART 1 Andrea Its a matching pension. You will notice this later on when you start working more hours, there is a maximum income you cap CPP on and they leave it at that. CPP payments will seem to decrease. S: is it possible to take all the amount off at once T: of the government pension plan? No S2: you wouldnt want to take that as a lump sum, lots of tax. If you take it out if that option is available, it would be considered your income T: the idea is we as human beings are not great at planning. Living is expensive, housing is expensive. We arent good at saving, this is a government way to save for you. If anyone is from Quebec, this whole program exists and its called the Quebec Pension Program. Another thing: if you make under 30 thousand a year, this is your yearly basic exemption. You dont pay CPP if you make this. If you're working full time and making less than 35 thousand you have problems. Whos taking their CSC? No one? If you're taking that you need to know these figures. Anyone want to start their own company? You get to pay your portion and the portion for the company. Even if you're self employed. Disability, survivor and Death Benefits under CPP/QPP CPP has that same kind of survivor benefit, this is usually for the spouse. There is also a disability benefit associated with this. If you could no longer work at a job there is a disability benefit funded through the CPP that will help to support you. If that does happen there is a safety net. If youve been contributing and cant work anymore there is a pension plan that comes for you. It can be more than just a spouse. Its a dependent, maybe a disabled child who requires part of that income. Its not just spouses, but that is most common of course. And death benefit, you have to apply for this. Its part of the CPP program, the idea behind it was to help people pay for funerals. Maximum 25 hundred dollars. Itsbeen this sum for as long as I can remember. What does a funeral cost these days? Good luck under 10. Its expensive. The 25 hundred doesnt come close to covering the funeral but you know this benefit is out there to apply for. It can help a little bit. Thats CPP, each comprised of four different elements. S: a funeral cost 4 thousand dollars T: Let me see the site. I have friends who are funeral directors, that is what they want to be called. Employer Pension Plan Benefits One of the benefits is it grows tax free. One really big benefit is most of the time companies also contribute. Thats a god deal, if someone wants to fund your retirement. They are creditor proof as well, in case you were sued. They are separate from your personal assets. What you see when you get a job, one thing will be regarding pension plans. Right at the top it will say what plan it is: Defined Benefit Pension Plan (DBPP) The titles they are given is exactly what they are. These used to be very popular, they are much less so now. If I am a company and you all retire and I give you 1000$/month. But lets say our company didnt
More Less
Unlock Document

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

You've reached the limit of 4 previews this month

Create an account for unlimited previews.

Already have an account?

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit