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© 2014 Pearson Canada Inc.#
The Canada Pension Plan ____.
A) is a government-administered pension plan
B) is a "pay-as-you-go" system
C) is underfunded
D) All of the above
Answer: D
Diff: 1 Type: MC Page Ref: 279
Skill: Applied
Objective List: 12.2 Understand the key aspects of pension funds
Personal pension plans ____.
A) are different from RRSPs
B) cannot be converted to annuity or a RRIF on retirement
C) provide tax-sheltered, self-financed retirement funds
D) are government-administered
Answer: C
Diff: 1 Type: MC Page Ref: 280
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds
What are three suggestions given for privatizing public pension plans?
Answer:
- Government investment of trust fund assets in corporate securities.
- Shift of trust fund assets to individual accounts that can be invested in private assets.
- Individual accounts in addition to those in the trust funds.
Diff: 3 Type: SA Page Ref: 280
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds
- Discuss what RRSPs are and how they help to provide income at retirement.
Answer: RRSPs are personal pension plans that provide tax-sheltered, self financed retirement
funds. Upon retirement, an RRSP must be converted into an annuity or a Registered Retirement
Income Fund (RRIF), which provides taxable annuity payments.
Diff: 2 Type: SA Page Ref: 280
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds