A Registered Pension Plan (RPP) is a pension plan that has been registered with the Canadian government. RPPs are a type of defined benefit pension plan, which means that the benefits that a retiree receives are predetermined, and are based on factors such as length of service and salary. RPPs are typically sponsored by employers, … Read more
How It Works, Taxation, and Types of Plans. What is a pension? A pension is a retirement savings plan that provides benefits to employees after they retire. pensions are typically funded by employer contributions and investment earnings. There are several types of pension plans, including defined benefit plans and defined contribution plans. Benefits from a … Read more
A pension shortfall is the difference between the amount of money that an individual has saved for retirement and the amount of money that they will need to maintain their standard of living in retirement. The size of the pension shortfall will depend on a number of factors, including the individual’s life expectancy, the rate … Read more
The “funded status” of a pension plan is the difference between the market value of the plan’s assets and the present value of the plan’s liabilities. If the market value of the plan’s assets is greater than the present value of the plan’s liabilities, the plan is said to be “overfunded.” If the market value … Read more
A Salary Reduction Simplified Employee Pension Plan (SARSEP) is a retirement plan that allows small businesses to offer their employees a retirement savings plan without the administrative burden and cost of a traditional pension plan. SARSEP plans are established by small businesses (generally those with 25 or fewer employees) and allow employees to make salary … Read more
An unfunded pension plan is a retirement plan in which benefits are paid directly from the pension fund’s assets, rather than from a separate trust fund. This type of plan is typically used by small businesses or by organizations that do not have the ability to fund a trust fund. What are the 3 types … Read more
The Central Provident Fund (CPF) is a compulsory savings scheme that provides retirement, healthcare and housing protection for working Singaporeans and permanent residents. Employees contribute a percentage of their monthly wages to their CPF account, while employers match these contributions. The CPF savings can be used for a variety of purposes, including buying a home, … Read more
An actuarial valuation is a periodic assessment of the financial health of a pension plan, usually conducted by an independent actuary. The valuation estimates the present value of all future benefits that have been earned by plan participants to date, and projects the expected financial costs of the plan over its remaining life. The valuation … Read more
Pension risk transfer (PRT) is the general term used to describe the shifting of pension liabilities from one entity to another. This can be done through a lump sum payment, an annuity purchase, or some other form of financial transaction. There are a number of reasons why an entity might seek to transfer pension liabilities. … Read more
What is a lump sum payment and how does it work? How is lump sum pension payout calculated? The calculation of a lump sum pension payout depends on a number of factors, including the type of pension plan, the age of the pensioner, and the interest rate at the time of payout. For example, a … Read more
