MTHEL131 Lecture Notes - Old Age Security
28 Nov 2013
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Document Summary
The government has tried to take back old age security payments from those who had an income of over ,000 per year upon retirement. You have to give back 15% of every dollar that exceeds k. This means that if you earn over ,000 per year, you have to pay back all of your old age security. The pension amount is determined by a formula: 5362 = years of service x earnings x factor. Years of service: how long you worked for. Earnings can be calculated in 3 ways: An employee earns ,000 per month, and is on the plan that allows them to contribute up to 4%. The plan also states that the employer has to match the contribution dollar for dollar. Every month, the fund would increase by (3000)(0. 04)(2) = the plans vary; the employee"s contribution is not always restricted to 4%, and the employer doesn"t always have to match it dollar for dollar.
