Which statement describes the government retirement benefits provided by CPP and OAS?

• A. CPP and OAS are government-provided retirement income, collectively part of government retirement benefits.
• B. OAS is a private pension plan; CPP is unemployment insurance.
• C. CPP only is retirement income; OAS is retirement savings.
• D. CPP and OAS are private sector benefits, not government programs.

Answer: (A)

Both CPP and OAS are government retirement benefits in Canada. The Canada Pension Plan is a mandatory public pension funded by contributions from workers and their employers, providing retirement income and also offering disability and survivors benefits. Old Age Security is a separate government program funded from general tax revenues that provides a base pension to most Canadians aged 65 and over, with residency requirements and income-related adjustments. Together, they constitute government retirement benefits. The idea that one is private or that CPP is unemployment insurance isn’t accurate, and they aren’t private-sector benefits.