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Important Group Benefits news / Ontario introduces legislation to eliminate mandatory retirement / Supreme Court ruling opens door for private insurance to cover medical care in Quebec.
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New rates for the Nova Scotia Seniors Pharmacare Programme. Download the pdf or visit the Nova Scotia Government website.
| DESCRIPTION |
CPP Maximum |
QPP Maximum |
| Year's Maximum Pensionable Earnings |
$40,500.00 |
40 500.00$ |
| Year's Basic Exemption |
3,500.00 |
3 500.00 |
| Maximum Contributory Earnings |
37,000.00 |
37 000.00 |
Annual Contributions*
Rate: Employee/Employer |
4.95% |
4.95% |
| Maximum Amount Employee/Employer |
1,831.50 |
1 831.50 |
| Retirement at Age 65 (per month) |
814.17 |
814.17 |
| Retirement at Age 60 (per month) |
569.92 |
569.92 |
| Disability Pension (per month) |
992.80 |
992.80 |
| Death Benefit (one lump sum) |
2,500.00 |
2,500.00 |
| Surving Spouse Benefits (under age 55) |
454.42 |
670.76 |
| Surving Spouse Benefits (age 55 to 64) |
454.42 |
704.90 |
| Surving Spouse Benefits (overage 65) |
488.50 |
488.50 |
| Orphan benefit and Disabled Contributer's Child benefit (per child/month) |
192.68
|
61.18
|
* Self-employed individuals pay twice the annual contribution indicated.
++ Survivor's pension is also available at earlier ages in varying amounts.
Note: The maximum benefit amounts are those payable to individuals becoming eligible to receive payments, for the first time, on January 1, 2003 and after.
| Old Age Security: (per month) Basic |
462.47 |
|
| Guaranteed Income Supplement |
549.63 |
Single pensioner or pensioner whose spouse does not receive OAS or Spouses Allowance |
| Guaranteed Income Supplement |
358.01 |
Pensioner whose spouse does receive OAS or Spouses Allowance |
| Spouses Allowance |
797.14 |
Age 60 - 64 whose spouse is a GIS recipient |
| |
880.06 |
Low income between ages 60 and 64, widowed |
| |
| Defined Contribution Registered Pension Plan contribution limit: |
$14,500.00 |
| Registered Retirement Savings Plan contribution limit: |
13,500.00 |
| Deferred Profit Sharing Plan contribution limit |
7,250.00 |
| Defined Benefit Registered Pension Plan contribution limit for the year
|
1,722.22 per annum at retirement |
Note: The dollar contribution limits are for the year 2003 and are subject to a maximum of 18% of employment earnings for the year or previous calendar year's earned income (RRSPs) as the case may be. |
|
| |
| Maximum Insurable Earnings (Annual) |
$39,000.00 |
| Employee Maximum Weekly Benefit |
413.00 |
| Employee Maximum Annual Contribution |
772.00 |
| Employer Maximum Annual Contribution |
1,081.00 |
| Employee Premium Rate (per $100 of insurable earnings)
Employer Premium Rate (per $100 of insurable earnings) |
1.98
2.77 |
PS - All benefits stated above are payable on a monthly basis except for the lump sum death benefit payable under the Canada/Quebec Pension Plan and the weekly benefits payable under Employment Insurance, or where stated otherwise.
The term "Spouse" includes common-law partner. |
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Consumer Price Index is a statistical device that measures the change in the cost of living for Canadian consumers. Old Age Pensions, Canada Pension Plan and Quebec Pension Plan payments, and other forms of social and welfare payments are adjusted periodically to take account of the changes in CPI.
Canada Pension Plan (CPP) provides benefits to workers and their families in the event of retirement, disability or death. CPP applies in Canada, with the exception of Quebec.
Quebec Pension Plan (QPP) provides benefits to workers and their families in the event of retirement, disability or death in the province of Quebec.
Insurable Earnings is the total amount of earnings that an insured person receives from insurable employment. Weekly Insurable Earnings serve to determine the Employment Insurance benefit payable, while the Maximum Annual Insurable Earnings (MIE) serve to determine the maximum annual premiums payable.
Maximum Contributory Earnings is the amount of Yearly Maximum Pensionable Earnings minus the Year's Basic Exemption (YBE).
(1) Disability Benefits - either individual policies or group - if the employee pays the entire premium the benefits they receive are non-taxable
(2) Group Life Insurance - premiums paid by the employer on behalf of the employee for group life and dependent group life are considered taxable benefits
(3) All Group Insurance - premiums paid by the employer on behalf of the employee for health and dental care are tax deductible as a business expense
(4) Health and Dental - reimbursement of health and dental expenses are tax free
(5) Health and Dental Premiums - paid by the employee are tax deductible as medical expenses - see tax office for more details
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