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Definition of Pension sponsors
Organizations that have established a pension plan.
A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the
A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec).
Under ERISA, the firm is liable to the plan participants for up to 39% of the net
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
A federal agency that insures the vested benefits of
Assets used to pay the pensions of retirees. An investment institution established to manage the assets used to pay the pensions of retirees.
A fund that is established for the payment of retirement benefits.
A formal agreement between an entity and its employees, whereby the
The entities that establish pension plans, including private business entities acting for their
A plan that primarily provides retirement and long-term disability income benefits for residents of Quebec.
Commonly referred to as an RPP this is a tax sheltered employee group plan approved by Federal and Provincial governments allowing employees to have deductions made directly from their wages by their employer with a resulting reduction of income taxes at source. These plans are easy to implement but difficult to dissolve should the group have a change of heart. Employer contributions are usually a percentage of the employee's salary, typically from 3% to 5%, with a maximum of the lessor of 20% or $3,500 per annum. The employee has the same right of contribution. Vesting is generally set at 2 years, which means that the employee has right of ownership of both his/her and his/her employers contributions to the plan after 2 years. It also means that all contributions are locked in after 2 years and cannot be cashed in for use by the employee in a low income year. Should the employee change jobs, these funds can only be transferred to the RPP of a new employer or the funds can be transferred to an individual RRSP (or any number of RRSPs) but in either scenario, the funds are locked in and cannot be accessed until at least age 60. The only choices available to access locked in RPP funds after age 60 are the conversion to a Life Income Fund or a Unisex Annuity.
A pension plan that has a negative surplus (i.e., liabilities exceed assets).
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