Question

1- Which of the following statements is not true?

a.The maximum possible retirement benefit from a DBPP depends on the maximum allowable years of service.

b.The maximum possible retirement benefit from a DCPP is the same as for a DBPP.

c.There is no maximum benefit for DCPP.

2- Henry’s company provides him with a defined contribution pension plan. The maximumamount of pension he can receive for each year of service is:

a.2% p.a. times his YMPE

b.2% p.a. times his pensionable earnings

c.$1,722.22d.There is no maximum

d.If a retiree dies, the spouse can receive some of the retiree’s pension benefits

For a defined benefit pension plan, all of the following are true except:

a.Benefits might increase each year to reflect inflation.

b.Benefits might be integrated with CPP retirement income.

c.Benefits must end when the retiree dies.

d.A common-law spouse can receive benefits after the retiree dies

Answer 1

Answers :

1) The statements which is not true is:

b.The maximum possible retirement benefit from a DCPP is the same as for a DBPP.

2) d) There is no maximum because the contribution levels can change &  the returns on the investments may go up & down so there is no maximum amount.

3) c) Benefits must end when the retiree dies because if the person die before under age of 75, this type of pension usually also pays to the spouse or dependent child

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