Fp1 / Practice Exam 2 Questions And Answers Already Graded A+

Which statement about a defined contribution pension plan is correct? A. Plan participants are paid a specified benefit at retirement. B. Benefit amount at retirement is known much ahead of retirement C. The value of the plan at retirement is not known in advance by the participant or employer D. The risk of fund shortfall rests with the employer. {Ans: C. The value of the plan at retirement is not known in advance by the participant or employer. The value of a DCPP fluctuates depending on the performance of the investments held within it. As such, what the plan value will be at retirement is not known by either the participant or the employer.}Helen plans to work until her 68th birthday in 2010. She has already applied to start receiving Canada Pension Plan (CPP) benefits right after her birthday. Her husband plans to retire at the same time and apply for CPP benefits just as he turns 63. If CPP/QPP benefits are $765 at age 65, calculate their combined CPP/QPP monthly pension? A. $1,530 B. $1,557 C. $1,576 D. $1,622. {Ans: C. $1,576 CPP pension benefits are permanently reduced by 0.5% for every monthly taken before age 65