Canada Pension Plan rates generally change on the first of January of each year. This is an example of:

• A. a regulation
• B. a guideline
• C. a policy
• D. a by-law

Answer: (A)

The key concept is how rates are set and applied through formal rules issued under a statute. The Canada Pension Plan is a federal statute, and the detailed mechanics, including the contribution rate and when it takes effect, are specified in the Canada Pension Plan Regulations. Because these rates are defined and binding through a regulatory framework that applies nationwide, this situation fits a regulation.

Guidelines are non-binding recommendations, policies are internal statements guiding actions, and by-laws are local laws enacted by municipalities. They don’t carry the same nationwide binding authority to set CPP contribution rates on a fixed schedule.