Business Administration - Financial Planning RFC230 Lecture 4: 7 Lesson 3 & 4 Retirement Planning
8 Mar 2017
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Document Summary
Past service pension adjustment (pspa: allows employees who have not participated in a dbp for some period duri(cid:374)g their e(cid:373)plo(cid:455)(cid:373)e(cid:374)t to (cid:373)ake (cid:862)(cid:272)at(cid:272)h-up(cid:863) contributions, reduces current year rsp contribution levels, e. g. : pa calculation for dcp: client a is a member of a dc plan, her annual salary is ,000, she contributes 5% of her salary to the dcp, her employer also contributes 5, pa. = 10% of ,000: = ,000, eg. : pa calculation for dbp: client b participates in a dbp, benefit accrual is , pa. = (benefit accrual 9) - : = ( 9) - , = ,500 - , = ,900. Locking-in provisions: specific age or (usually, age 55, period of service or plan membership. Rrsp or life income fund (lif: lrif available in alberta, newfoundland and manitoba, a rrif and a lif both have minimum withdrawal amounts; however, an. Lif has a (cid:373)a(cid:454)i(cid:373)u(cid:373) li(cid:373)it while a rrif does(cid:374)"t.
