Question

In many ways, the requirements for QPP parallel those of CPP, with the following differences: _______________.

Option 1: QPP covers only self-employed individuals
Option 2: CPP is federal, while QPP is provincial
Option 3: QPP has higher contribution rates
Option 4: CPP is applicable only to public sector employees

Answer 1

The difference between Quebec Pension Plan (QPP) and Canada Pension Plan (CPP) is that CPP is a federal program while QPP is managed provincially by Quebec. Both plans cover most workers, including the self-employed, and are not limited to specific employment sectors.

Step-by-step explanation:

The question pertains to the differences between the Quebec Pension Plan (QPP) and the Canada Pension Plan (CPP), which are both types of employer payment options of retirement benefits in Canada. The correct answer to the question is Option 2: CPP is federal, while QPP is provincial. The CPP is a retirement pension available to all eligible workers across Canada excluding Quebec, where the QPP provides similar benefits but is managed by the provincial government of Quebec. It is important to note that neither CPP nor QPP covers only self-employed individuals or public sector employees exclusively; both plans cover most workers, including the self-employed. However, contribution rates and specifics of benefits can vary between the two programs.