knowledge topics
DB Pension Plan Transfers
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify potential reasons why an individual may choose to transfer capital property into a defined benefit pension plan.
- Voluntary or involuntary termination of employment
- Breakdown of the plan member’s relationship
- Death of the plan member’s current (or former) spouse
- Termination of pension plan membership
- Termination of pension plan
- Voluntary choice by the plan member
- Identify potential reasons why an individual may choose to transfer capital property out of a defined benefit pension plan.
- Voluntary or involuntary termination of employment
- Retirement
- Breakdown of the plan member’s relationship
- Death of the plan member
- Termination of pension plan membership
- Termination of pension plan
- Identify the types of plans from which capital property may be transferred tax-deferred into a defined benefit pension plan.1,2
- Identify the types of plans to which capital property may be transferred tax-deferred out of a defined benefit pension plan.3
- Explain the Canada Revenue Agency’s requirements related to tax-deferred transfers of capital property to or from a defined benefit pension plan upon the breakdown of a relationship between spouses.4
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
