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
... [Show More] periodic payments during retirement.
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.
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.
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).
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.
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.
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.
Equity - ANSWER refers to pension plans being equitable among members with different employment histories; however, several different concepts of equity exist.
Year's maximum pensionable earnings (YMPE) - ANSWER refers to the year's maximum pensionable earnings, as defined under the Canada Pension Plan (CPP).
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. [Show Less]