IRE367H1 Chapter Notes - Chapter 12: Defined Contribution Plan, Old Age Security, Unemployment Benefits
16 Dec 2020
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Canada/quebec pension plan (cpp/qpp), employment insurance, and. For lower-income employees, can amount to 10% of total compensation. Because of caps on premiums, these programs typically amount to a much smaller percentage of compensation of more highly paid employees (avg 5-6%) Employers must also provide minimum level of holidays, rest breaks, and statutory vacation time. All canadians are currently entitled to old age security, which pays a small fixed pension; low-income pensioners also receive guaranteed. All employees also qualify for cpp or qpp, with the amount of their pension dependent on their credited contributions. After mandatory benefits, pension and retirement plans are costliest items. Hybrid pension plans used mainly to transition from one system (usually defined benefit) to the other (usually defined contribution) Provide specified stream of income from time of retirement until death. Amount usually geared to some proportion of employee"s annual earnings, modified by number of years the employee has been covered bny the plan.
