RPA1 EXAM WITH ACCURATE
QUESTIONS AND ANSWERS
(VERIFIED ANSWERS) | LATEST
(2026/2027) UPDATED VERSION |
100% GUARANTEED PASS
{JUST RELEASED}
1. Registered Pension Plan - ANSWER ✓ refers to an arrangement offered by an
employer or union to provide retirement benefits to plan members in the form
of periodic payments during retirement.
2. Defined benefit (DB) pension plan - ANSWER ✓ refers to a registered pension
plan that provides benefits based on the plan member's years of service and
earnings.
3. Defined contribution (DC) pension plan - ANSWER ✓ refers to a registered
pension plan that provides benefits based on the amount accumulated in the
plan member's account from the contributions made by the employer and the
employee, if it is a contributory plan.
,4. Career average or final earnings plan - ANSWER ✓ refers to the formula used
to determine the retirement benefits to be provided from a defined benefit
pension plan. A formula based on career average earnings will base payments
on the average annual earnings spanning the employee's career as a plan
member; whereas a final earnings plan will base the payments on the final
years of service (typically 3-5 years).
5. Multi-employer pension plan (MEPP) - ANSWER ✓ refers to a plan to which
two or more, usually non-affiliated, employers contribute. Employers who are
part of the MEPP, allow employees to benefit from pension entitlement that is
based on the aggregate of pension credits earned while employed with various
employer members of the plan.
6. Target benefit plan - ANSWER ✓ refers to a type of pension plan that is
designed to provide a defined benefit but is similar to a defined contribution
plan in that it has fixed contributions.
7. Adequacy - ANSWER ✓ refers to the target level of retirement income to be
provided through an employer plan, that is intended to supplement
government programs and individual savings to provide employees with a
reasonable income during retirement.
8. Equity - ANSWER ✓ refers to pension plans being equitable among members
with different employment histories; however, several different concepts of
equity exist.
,9. Year's maximum pensionable earnings (YMPE) - ANSWER ✓ refers to the
year's maximum pensionable earnings, as defined under the Canada Pension
Plan (CPP).
10. Bridge benefits - ANSWER ✓ refers to special benefits provided to pension
plan member's who take a reduced pension, prior to reaching age 65. This
payment supplements the pension benefits until the plan member is eligible to
start receiving CPP or QPP retirement benefits.
11. Capital accumulation plan (CAP) - ANSWER ✓ refers to a tax-assisted
registered savings plan that offers a level of flexibility to plan members for
making investment decisions. Typically, with DC pension plans, Group RRSPs
and DPSPs, the employer will offer options to employees with regards to the
investment of plan assets. This allows plan members to take increased risk or
invest more conservatively, depending on their individual risk tolerance and
objectives.
12. Pension credit - ANSWER ✓ refers to a non-refundable tax credit that is
applied to the first $2,000 of eligible pension income that an individual
receives each year. The taxpayer can claim a tax credit of the minimum federal
tax rate (15%) of the first $2,000 of pension income, for a maximum amount
of $300, regardless of the age of the taxpayer, or minimum age of 65 for
RRSPs, DPSPs and RRIFs.
, 13. Past service benefits - ANSWER ✓ refers to the provision of pension credits to
employees for service before the establishment of a new DB pension plan.
14. Pensionable/credited service - ANSWER ✓ refers to the time that a plan
member is calculated as being an active member of the pension plan.
15. Contributory and non-contributory plan - ANSWER ✓ refers to the
requirement to make contributions to the pension plan. In a non-contributory
plan, the employer is solely responsible for making all contributions to the
plan; whereas a contributory plan allows, or requires, the plan member to
make contributions as well as the employer.
16. 50% rule - ANSWER ✓ refers to the requirement for an employer to provide at
least 50% of the pension contributions to a defined benefit pension plan. If the
plan member's contributions plus earned interest or investment income equal
more than 50% of the commuted value, the excess is refunded to the member.
17. Normal retirement - ANSWER ✓ refers to the age at which a plan member can
collect a full pension from the plan.
18. Early retirement - ANSWER ✓ refers to the age at which a plan member can
begin to collect a reduced pension from the plan.
QUESTIONS AND ANSWERS
(VERIFIED ANSWERS) | LATEST
(2026/2027) UPDATED VERSION |
100% GUARANTEED PASS
{JUST RELEASED}
1. Registered Pension Plan - ANSWER ✓ refers to an arrangement offered by an
employer or union to provide retirement benefits to plan members in the form
of periodic payments during retirement.
2. Defined benefit (DB) pension plan - ANSWER ✓ refers to a registered pension
plan that provides benefits based on the plan member's years of service and
earnings.
3. Defined contribution (DC) pension plan - ANSWER ✓ refers to a registered
pension plan that provides benefits based on the amount accumulated in the
plan member's account from the contributions made by the employer and the
employee, if it is a contributory plan.
,4. Career average or final earnings plan - ANSWER ✓ refers to the formula used
to determine the retirement benefits to be provided from a defined benefit
pension plan. A formula based on career average earnings will base payments
on the average annual earnings spanning the employee's career as a plan
member; whereas a final earnings plan will base the payments on the final
years of service (typically 3-5 years).
5. Multi-employer pension plan (MEPP) - ANSWER ✓ refers to a plan to which
two or more, usually non-affiliated, employers contribute. Employers who are
part of the MEPP, allow employees to benefit from pension entitlement that is
based on the aggregate of pension credits earned while employed with various
employer members of the plan.
6. Target benefit plan - ANSWER ✓ refers to a type of pension plan that is
designed to provide a defined benefit but is similar to a defined contribution
plan in that it has fixed contributions.
7. Adequacy - ANSWER ✓ refers to the target level of retirement income to be
provided through an employer plan, that is intended to supplement
government programs and individual savings to provide employees with a
reasonable income during retirement.
8. Equity - ANSWER ✓ refers to pension plans being equitable among members
with different employment histories; however, several different concepts of
equity exist.
,9. Year's maximum pensionable earnings (YMPE) - ANSWER ✓ refers to the
year's maximum pensionable earnings, as defined under the Canada Pension
Plan (CPP).
10. Bridge benefits - ANSWER ✓ refers to special benefits provided to pension
plan member's who take a reduced pension, prior to reaching age 65. This
payment supplements the pension benefits until the plan member is eligible to
start receiving CPP or QPP retirement benefits.
11. Capital accumulation plan (CAP) - ANSWER ✓ refers to a tax-assisted
registered savings plan that offers a level of flexibility to plan members for
making investment decisions. Typically, with DC pension plans, Group RRSPs
and DPSPs, the employer will offer options to employees with regards to the
investment of plan assets. This allows plan members to take increased risk or
invest more conservatively, depending on their individual risk tolerance and
objectives.
12. Pension credit - ANSWER ✓ refers to a non-refundable tax credit that is
applied to the first $2,000 of eligible pension income that an individual
receives each year. The taxpayer can claim a tax credit of the minimum federal
tax rate (15%) of the first $2,000 of pension income, for a maximum amount
of $300, regardless of the age of the taxpayer, or minimum age of 65 for
RRSPs, DPSPs and RRIFs.
, 13. Past service benefits - ANSWER ✓ refers to the provision of pension credits to
employees for service before the establishment of a new DB pension plan.
14. Pensionable/credited service - ANSWER ✓ refers to the time that a plan
member is calculated as being an active member of the pension plan.
15. Contributory and non-contributory plan - ANSWER ✓ refers to the
requirement to make contributions to the pension plan. In a non-contributory
plan, the employer is solely responsible for making all contributions to the
plan; whereas a contributory plan allows, or requires, the plan member to
make contributions as well as the employer.
16. 50% rule - ANSWER ✓ refers to the requirement for an employer to provide at
least 50% of the pension contributions to a defined benefit pension plan. If the
plan member's contributions plus earned interest or investment income equal
more than 50% of the commuted value, the excess is refunded to the member.
17. Normal retirement - ANSWER ✓ refers to the age at which a plan member can
collect a full pension from the plan.
18. Early retirement - ANSWER ✓ refers to the age at which a plan member can
begin to collect a reduced pension from the plan.
