Question

Québec Pension Plan contributions must be withheld from all workers aged 18 or older who are in pensionable employment, including employees who are:

A) Younger than 18
B) Older than 18
C) Not in pensionable employment
D) Part-time workers

Answer 1

Contributions to the Québec Pension Plan must be withheld from workers aged 18 or older who are in pensionable employment. This includes part-time workers, not those younger than 18 or not in pensionable employment. Defined contribution plans like 401(k)s have largely replaced traditional pension plans.

Step-by-step explanation:

The Québec Pension Plan requires contributions to be withheld from all workers who are aged 18 or older and are in pensionable employment. Among the choices provided, the correct answer is B) Older than 18. It is important to note that part-time workers are also included in this category if they meet the age and employment criteria, as pension contributions are not exclusively for full-time employees. The shift from traditional defined benefits retirement plans to defined contribution plans such as 401(k)s and 403(b)s has changed the retirement savings landscape. These newer plans offer benefits like tax deferral and portability and allow the worker to invest in various vehicles to potentially shield against inflation.