Sandra is the Chief Financial Officer (CFO) in her late father’s business (he passed away 5 years ago). She is married to Chris. Both her and Chris just turned 65. They have always lived in Quebec. Chris was a stay-at-home dad and cared for their two children who are now adults. Chris has never worked and has decided to continue to remain at home and now care for their two grandchildren ages 2 and 4. (6 marks-1 mark each)

Both Chris and Sandra are looking to you for the following answers to their questions.
⦁ At age 65, will Chris be eligible for Old Age Security (OAS)? Highlight AND underline your response Yes or No (1 mark)

⦁ At age 65, will Chris be eligible for Quebec Pension Plan (QPP)? Highlight AND underline your response Yes or No (1 mark)

⦁ Chris has never contributed to a Tax-Free Savings Account, how much could he contribute as of today, April 8, 2022? Consider carry forward amounts. $_____________ (1 mark)

⦁ Chris has never contributed to a Registered Retirement Savings Account (RRSP), how much could he contribute as of today, April 8, 2022? Consider carry forward amounts.
$____________ (1 mark)

⦁ Sandra is looking at her options when it comes to applying for her Quebec Pension Plan (QPP). She knows that the age at which she begins receiving this retirement pension will affect her income for the rest of her life, so she wants to choose wisely. She is weighing two scenarios; one is to retire now and to start receiving this pension at age 65 while the other scenario is to delay the QPP pension to age 70. If she starts receiving her QPP at age 65, she will receive the maximum annual pension of $15,043. What would be the amount of her annual QPP pension if she decides to delay it to age 70?
$______________ (1 mark)

⦁ Sandra believes that her Old Age Security (OAS) pension will be subject to clawback. She is trying to understand what this means. The maximum OAS pension in 2022 is $7,707. Sandra’s net income is $122,000 (which includes her OAS pension). The clawback starts at the minimum threshold of $81,761 to the maximum threshold of $133,141. How much will Sandra keep of her OAS when the clawback rate is 15%? (1 mark)
Sandra’s OAS calculation: (1 mark)

Mini-Case D: (2 marks)
Ellie is 30 years old and just started working for Microsoft. She is paid on the 1st of each month. Upon receipt of her gross monthly salary of $9,000, she immediately contributes $1,000 to the Group Registered Retirement Savings Plan (RRSP) where at the same time, the company matches her contribution. She guesses that she could earn 6% interest compounded weekly over this period.
⦁ If she continues to do so for the next 35 years, how much will she have accumulated in her RRSP for her retirement? (1 mark)
Calculate the amount that Ellie will receive: (1 mark)

⦁ For group insurance, Microsoft pays for Long Term Disability (LTD) insurance but requires Ellie to pay for Short Term Disability (STD) Insurance. STD and LTD plans vary per employer. Most STD plans cover 75% of gross salary for sixteen weeks, and then 65% of gross salary potentially to age 65 for LTD, which is also how Microsoft’s group insurance pays out. Explain to Ellie the benefits of disability insurance. (.5 marks)
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⦁ Ellie was out of work on Short Term Disability leave for one month while she recovered from COVID. How much did Ellie receive from Microsoft during this one month while on leave? (.5 marks)