RPA1 Study Guide Questions And Answers.
RPA1 Study Guide Questions And Answers.Registered Pension Plan -ANSWERrefers to an arrangement offered by an employer or union to provide retirement benefits to plan members in the form of periodic payments during retirement. Defined benefit (DB) pension plan -ANSWERrefers to a registered pension plan that provides benefits based on the plan member's years of service and earnings. Defined contribution (DC) pension plan -ANSWERrefers 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. Career average or final earnings plan -ANSWERrefers 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). Multi-employer pension plan (MEPP) -ANSWERrefers 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. Target benefit plan -ANSWERrefers 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.
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