BoK Statement

Define an Individual Pension Plan.
Explain how each of the factors may impact the suitability of establishing an Individual Pension Plan, such as:
- Occupation
- Age
- Earnings
- Current contributions to a Registered Retirement Savings Plan
- Opportunity for past service contributions
- Available cash flow
- Credit protection requirements
Evaluate how each of the factors may impact the suitability of establishing an Individual Pension Plan.
Explain the costs and responsibilities associated with setting up and maintaining an Individual Pension Plan, such as:
- Triennial actuarial assessments
- Actuarial costs
- Accounting costs
- CRA reporting
- Plan administration/investment management costs
Identify when the first prescribed annual minimum withdrawal amount from an Individual Pension Plan must start.
Identify factors used to calculate the prescribed annual minimum withdrawal amount from an Individual Pension Plan.
Explain the tax impact of an Individual Pension Plan.
- Contributions
- Benefits received by plan member
Explain the treatment of an Individual Pension Plan upon death.
- For the Individual Pension Plan member
- For the Individual Pension Plan member’s spouse

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of

Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource

Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it

Compare

To note the similarities and differences between two or more things

Estimate

To determine an approximate value for

Calculate

To find the value using mathematics

Convert

To change from one form or purpose to another

Evaluate

To reach a conclusion or make a judgement through careful study

Interpret

To give the meaning of / to construe or understand / to translate orally

Read more about the Taxonomy used in the FP-BoK

Financial Planning Body of Knowledge