Which of the following does NOT fund the Old Age Security (OAS) program?

Study for the Canadian Institute of Financial Planning Exam. Utilize flashcards and multiple choice questions, each equipped with hints and explanations to aid your preparation. Get ready to conquer your exam with confidence!

The Old Age Security (OAS) program is primarily funded through government tax revenues, general revenue taxation, and investment income from the Canada Pension Plan Investment Board. A key point of distinction is that the OAS is not funded through direct contributions from recipients of the program. Instead, it is based on the principle of social insurance, where the funding comes from general taxation, reflecting the social contract whereby citizens pay into a system that benefits them later in life.

Direct contributions, such as those made to the Canada Pension Plan (CPP), differ significantly from OAS funding. While individuals contribute to the CPP throughout their working life to receive their retirement benefits, OAS is funded by government sources rather than recipients directly contributing to the program. Recipients of OAS do not pay premiums or make contributions that would fund their future benefits, reinforcing the concept that it is largely a publicly funded program aimed at providing financial support to seniors based on residency rather than employment history.

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