RPA 1 Mid Term

1. What is the role of Courts played in the evolution of the pension system

The court basically followed the law there were not need to get invovled

Fiduciary duties of trustees of plan is not important

The court did not need to scrutize government programs

MPM p 1.A8

Explanation

MPM p 1.A8

2. A good pension plan improves the employer's competitive position

True

False

A good pension plan improves the employer's competitive position because it helps attract and retain talented employees. Offering a competitive pension plan can make a company more attractive to job seekers, giving them an edge over other employers who may not provide such benefits. Additionally, a good pension plan can help increase employee loyalty and morale, leading to higher productivity and lower turnover rates. This ultimately enhances the employer's competitive position in the job market.

Explanation

A good pension plan improves the employer's competitive position because it helps attract and retain talented employees. Offering a competitive pension plan can make a company more attractive to job seekers, giving them an edge over other employers who may not provide such benefits. Additionally, a good pension plan can help increase employee loyalty and morale, leading to higher productivity and lower turnover rates. This ultimately enhances the employer's competitive position in the job market.

3. Define Retirement

Retirement is when decides to stop working and then go back into the work force

I when a person's maxium earning falls below 40%

Retirement is when a person cease to be employed

Retirement is the state in which a person stops being employed or working. It is the phase of life when an individual chooses to withdraw from their occupation, usually after reaching a certain age or fulfilling specific requirements. During retirement, individuals typically rely on savings, pensions, or other sources of income to support themselves instead of actively working.

Explanation

Retirement is the state in which a person stops being employed or working. It is the phase of life when an individual chooses to withdraw from their occupation, usually after reaching a certain age or fulfilling specific requirements. During retirement, individuals typically rely on savings, pensions, or other sources of income to support themselves instead of actively working.

4. What is a define benefit plan ?

Employees must contribute to plan

No one can determine how much the employee will get until he/she are retired

A defined benefit plan is a retirement plan in which the employer guarantees a specific benefit amount to the employee upon retirement. The total amount of money required to provide these benefits is determined based on actuarial calculations. Unlike defined contribution plans, where employees contribute to the plan, in defined benefit plans, the employer bears the responsibility for funding the plan. The specific benefit amount that an employee will receive upon retirement cannot be determined until they actually retire.

Explanation

A defined benefit plan is a retirement plan in which the employer guarantees a specific benefit amount to the employee upon retirement. The total amount of money required to provide these benefits is determined based on actuarial calculations. Unlike defined contribution plans, where employees contribute to the plan, in defined benefit plans, the employer bears the responsibility for funding the plan. The specific benefit amount that an employee will receive upon retirement cannot be determined until they actually retire.

5. What is Flat Benefit Penison Plan ?

It is difficult to understand and calculate

It a type of pension that is supplemental to CPP

I determines how much you earn pays a set amount for each year time years of service

Flat benefit or uniform benefit pension plan is specified number of dollars for each year of service

pg 16-17 Text

Explanation

pg 16-17 Text

6. What are the three pillar struture of retirement income system ?

CPP, OAS GIS

Government-Admin/sponsored plan, Employer Sponsored and Individually Sponsored

Employer-sponsored retirement and saving program and Investment Management pla

The three pillar structure of the retirement income system includes a government-administered or sponsored plan, an employer-sponsored plan, and an individually sponsored plan. The government-administered or sponsored plan refers to programs such as the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS). The employer-sponsored plan involves retirement and saving programs provided by employers to their employees. Lastly, the individually sponsored plan refers to personal investment and savings strategies for retirement, such as individual retirement accounts (IRAs) or personal savings accounts.

Explanation

The three pillar structure of the retirement income system includes a government-administered or sponsored plan, an employer-sponsored plan, and an individually sponsored plan. The government-administered or sponsored plan refers to programs such as the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS). The employer-sponsored plan involves retirement and saving programs provided by employers to their employees. Lastly, the individually sponsored plan refers to personal investment and savings strategies for retirement, such as individual retirement accounts (IRAs) or personal savings accounts.

7. All are true about Career Average Earning Pension Plan EXCEPT

It is a form of Define Benefit Plan

It is calculated using the a % of each year of plan membership

All the employees earning are averaged then a % calculated time the years of service

This type of plan is normally integrated with C/QPP

pg 17 Text

Explanation

pg 17 Text

Rpa 1 Mid Term