Sample Question 2 for Collection

Gobeil’s Collection of 1,000 Questions™

Sample Question 2

Michelle was recently widowed as a result of the death of her husband, Tom. As a result
of Tom's death and Michelle's age, the family presently receives a number of
government benefits. Michelle has a son named Simon from their marriage. Simon is 18
years of age and marrying for his first time. He and his new wife plan to continue going
to school full-time until they obtain their degrees. Michelle has also met someone and is
planning to remarry.

What is the consequence for their receipt of social security benefits?
(A) Michelle will lose her Guaranteed Income Supplement (GIS).
(B) Simon will lose his Orphan's Benefits.
(C) Michelle will lose her Survivor's Pension under the CPP.
(D) Michelle will lose her Survivor's Allowance under the OAS program.

(Concepts) The Survivor's Pension is a benefit under the Canada Pension Plan and does
not terminate when the recipient remarries.

The Orphan's Benefit is a benefit under the Canada Pension Plan, and it is payable to
the child of a deceased contributor until age 18, or until age 25 if the child goes to school
full-time. The Orphan's Benefit is not terminated by marriage of the child, as long as that
child continues to meet the other requirements of the program.

The Survivor's Allowance is a benefit under the OAS program, and the qualifications for
the Survivor's Allowance are similar to those for the Allowance. The Survivor's
Allowance is payable until age 65, when it is replaced with standard OAS and GIS
benefits, or it can terminate before that time if the recipient dies or remarries.
The entitlement to GIS benefits is based on age and income, not on marital status.
However, in the case of a couple, the Guaranteed Income Supplement is reduced by $1
for every $2 of the couple's base income.

Answer is (D). (Choice A) Michelle has also met someone and is planning to remarry.
Receipt of the GIS is based on age and income, not on marital status.
So, Michelle will continue to receive the GIS after remarrying, unless their new
combined income puts her above the income level cut off for GIS benefits.
So, Michelle will not lose her Guaranteed Income Supplement (GIS).

(Choice B) Simon is 18 years of age and marrying for his first time. He and his new wife
plan to continue going to school full-time until they obtain their degrees. Simon will
receive Orphan's Benefits until age 25, as long as he is enrolled in a full-time educational
program at a qualified educational institution. Because Simon intends to remain in
school, and the Orphan's Benefit is not terminated by his marriage, Simon will continue
to receive this benefit until he turns 25 or until he leaves school, whichever comes first.
So, Simon will not lose his Orphan's Benefits.

(Choice C) Michelle has also met someone and is planning to remarry. The Survivor's
Pension that is provided under the Canada Pension Plan is not terminated if the recipient
decides to remarry.
So, Michelle will not lose her Survivor's Pension under the CPP.

(Choice D is true.) Michelle has also met someone and is planning to remarry. The
Survivor's Allowance provided under the OAS program ceases if the recipient remarries.
So, Michelle will lose her Survivor's Allowance under the OAS program.