Canada Pension Plan Pros And Cons

The Canada Pension Plan is a retirement savings plan which is mandatory for all working residents of Canada (except Quebec). This is a plan which is split between employers and employees. Since

John and Janet Baker are husband and wife and maintain a household of 7, including Janet and John. Calvin and Florence Carter are Janet’s parents, who are retired. During the year, they received $19,000 in nontaxable funds (disability income, interest on municipal bonds and Social Security benefits) from which $8,000 was equally spent between them on clothing, transportation, and recreation. The remaining $11,000 was invested in tax-exempt securities. Janet Baker paid $1,000 for her mother’s dental work and $1,200 premium on her father’s own life insurance policy. Janet’s father,

New Single Accounts – 210 Applications - 4.2 Batches X 1.75 = 7.35 person hours New Joint Accounts - 280 Applicants – 5.6 Batches X 2.5 = 14 person hours Single Accounts with CIfing already done – 200 applicants – 5 Batches X 1.4 = 7 person hours Joint Accounts with CIfing already done - 400 applicants – 8 Batches X1.75 = 14 person hours Time Spent on Posting Cheques -

Therefore, it allowed Canadians to lead healthier lives since they were able to pay reasonable prices to have more medical checkups, tests and treatments from any doctor that was available to them. The new act did not only make a change for the health of Canadians, but also for poverty rates in the country. Before this act, many citizens were unable to go to work for long periods of time as a result of not receiving expensive treatments for severe and benign diseases that they had. This forced families to live in poverty as it became difficult for them to gain income. However, since Pearson’s program made it more affordable for individuals to get the medical care they needed, such instances became less common as more people became financially able to get treatment. This allowed these people to then become physically able to obtain a job and raise themselves out of poverty. Furthermore, another way that Pearson contributed to the lives of Canadians was by creating the Canadian Pension Plan

The Canada Pension Plan is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family against the loss of income due to retirement, disability and death.

Under this system individual citizens are provided preventative care and medical treatments from primary care physicians as well as access to hospitals, dental surgery and additional medical services. With few exceptions, all citizens qualify for health coverage regardless of medical history, personal income, or standard of living. (Canadian Health Care, 2004-2007) These insurance plans are provincial or territorial and are financed by both the federal and the provincial authorities. Provinces are similar to states in the US, and Canada has 10 provinces, which are Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec and Saskatchewan. From about 1940 to 1950 the American government stepped in and encouraged employers to offer health insurance as a part of employee compensation packages which in turn the supply of health insurance increased as more and more commercial insurance companies entered the market and the use of healthcare increased as medical technology became more sophisticated.

These concerns were reinforced by the fact that many elderly Canadians were applying for public relief.” However, it was not until several provinces began complaining about the amounting cost of relief that lead to the federal old age pension scheme. “Guest (as sited in Chappell, 2006) the federal government made a commitment to assist the elderly and the old age pensions act was established in 1927.” All Canadians were entitled once they reach the age of seventy or older in contrast to today, one can retire at the age of 60-65. The Canadian government eventually shared the cost of relief with the provincial government. The old age pension act has been criticized because of the inadequate in benefit pay outs. According to Guest (as sited in Chappell, 2006) in 1951, the old age pension was replaced by two pension plans, Old Age Security and Old Age Assistance.” The Old Age Security provides universal benefits and was funded by the federal government while the Old Age Assistance was funded by the federal and provincial government and managed by the province. As Guest (1997) pointed out, The Canadian Pension plan and Quebec Pension Plan was introduced in 1965 which individuals could collect once they retired, however they had to have made contribution between the ages of eighteen to seventy years of their working life.

Though Canada is often regarded as the United States’ “little brother”, one thing that differentiates Canada from the US is their free health care system. Medicare, Canada’s universal health insurance, is only one of the changes Pearson introduced to Canada’s welfare state. Pearson also established the Canada Pension Plan in 1966 to support retired citizens, as well as the Canada Assistance Plan which funded welfare programs for the disabled and injured. At the time, Canada had a strong economy, making additions such as the Canada Student Loans Program and increased funding for university research possible. Not only did

Canada has a system that consists of socialized health insurance plans that provide coverage to all its citizens. Canada health care is largely government-funded, with most services provided by private enterprises with some publicly funds all, which is controlled and administered, within guidelines set by the federal government ("Healthy Canadians: A Federal report on Comparable Health Indicators ", 2009).

Canada has a single payer healthcare system which is solely financed by the government. The origin of the Canadian healthcare system is traced back from 1941, when some provinces introduced the compulsory health insurance. After the WWII province Saskatchewan set up the hospitalization plan which brings out Canadians healthcare system in current form. The main feature of this plan was to create the regional hospital system: for primary care they have local hospitals, whereas in more complex cases, they have district hospitals and for even more difficult cases they introduced the base hospitals. By 1971 Canada has the national health insurance plan providing care for both physician’s services and hospitalization. Under the act of provision of the 1984 Canada Health Act, Health coverage is available to all the residents with no out of pocket charges with the minor exceptions. In Canada it is illegal to have private health insurance to those who have services. Most Canadians have a supplemental plan if they are not insured which provides prescription drugs and dental

The birth of Medicare was in Saskatchewan on July 1, 1962. Medicare was the first government controlled, comprehensive, universal single payer medical insurance plan in Canada. Many insurance industries and all the medical institutions were against the idea of having Medicare. They feared that Medicare will become popular and will spread across the globe. Once the plan was successful all of Canada was protected by a medical insurance system that was based on the Saskatchewan plan and no politician would be allowed to openly oppose it. In addition, the Canadian health care system is a group of socialized health insurance plan that covers the medical costs of all Canadian citizens. The Canadian health care system is publicly subsidized and overseen on a Provincial and or territorial basis, within guidelines set by the Federal government. Canadian citizens are protected under the health care system, for their medical treatments from primary care physicians, access to hospitals, and additional medical services. Every Canadian citizen qualifies for health care coverage regardless of their income, lifestyle, and medical history. Although Canadians are protected for a portion of their health care there are still many services that are not protected under the health care system, such as dental services, prescription medication, and optometrists.

     Several federal agencies today support and administer the various Social Security programs. The programs associated with Social Security include Old-Age, Survivors, and Disability Insurance (OASDI), Medicare, Unemployment Compensation, and Supplemental Security Income (SSI). For people who have worked for a living, OASDI and Medicare provide support during their older years and when they have stopped working. Unemployment Compensation provides temporary financial help during periods between jobs. SSI provides income to people who cannot work for various reasons. The OASDI

Beginning in 2007 and reaching critical mass in 2008, repercussions of economic downturn were being felt by nations across the globe. In North America, the collapse of the United States housing and mortgage market along with the wreckless actions of financial institutions and Wall Street can be identified as some of the main triggers in the downturn. Other nations were feeling declines as well, and the eventual decline in some European Union countries further contributed to this worldwide situation. This economic downward spiral quickly made its way into Canada, and was a huge issue of concern during the 2008 federal election. Out of this federal election walked a minority elected

The health sector in Canada has experienced a lot of challenges regarding to the seniors who are increasingly coming into being. This has posed a challenge to the Canadian health sector in general, although through proper health strategies the number has posed no challenge to the Canadian government so far. Provisionally, the health sector has taken a different approach in ensuring that the old aged are taken care of appropriately. The analysis of the different provinces strategies is therefore important in ensuring that the sustainability of the old aged population is achieved. According to the national statistics in Canada in 2011, the population of seniors who are aged 65 years and above was 153,705. Nova Cotia had the highest number of seniors totaling 16.5% of the population with Saskatchewan following with a percentage of 14.87%. However, by 2036, it is expected that the Newfoundland and Labrador will have the highest proportion of seniors.

Cory currently has $76,000 (2 x $38,000) of term life insurance through his employer. Consequently, Cory should consider purchasing approximately $293,000 of additional life insurance coverage. Tisha has $69,000 of term insurance through her employer, as well as a whole life policy of $50,000. She should consider purchasing an additional $328,000 of life insurance coverage ($447,065 – $119,000). While Tisha or Cory