Year's Maximum Pensionable Earnings
What it is:
A Pension Plan.'s maximum pensionable is what the Canadian government uses to determine the maximum amount a person can get from the Canada
How it works/Example:
The Canada Social Security program in the United States. It provides workers with a series of monthly payments in retirement. The size of those payments depends on the worker's during his or her earning years.
In the Canada Pension Plan, there is an annual limit on how much of a worker's earnings become pensionable. The number changes frequently.
Why it matters:
Social insurance programs like the Canadaare designed to help vulnerable populations, such as the elderly, ensure that they have enough to subsist on. Similar to the program, a portion of workers' are taxed and placed into the plan.