How are Canada or Quebec Pension Plan benefits funded?

Question

Quizplus · Accepted Answer

Canada and Quebec Pension Plan benefits are funded through a tax on employee wages and salaries, paid equally by employers and employees. This is commonly referred to as a payroll tax, which is a mandatory deduction from a worker's paycheck designed to fund social security programs. The employee and employer contribute a set percentage of the employee's salary to the plan, and these contributions are used to fund retirement benefits, survivor benefits, and disability benefits for eligible participants. The tax rate and contribution limit for the Canada and Quebec Pension Plan vary each year and are set by the federal government.

How Are Canada or Quebec Pension Plan Benefits Funded