knowledge topics
PRPP Benefits
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify factors that influence the pension benefit amount for a Pooled Registered Pension Plan member, such as:
- Amount of money contributed to the account
- Length of investment time horizon
- Earnings on the amount invested
- Estimate the projected pension benefit for a Pooled Registered Pension Plan member.
- Explain the pension benefit options that may be available to a Pooled Registered Pension Plan member.1
- Explain the tax impact of withdrawing and receiving a benefit from a Pooled Registered Pension Plan.1
- Estimate the tax impact of withdrawing and receiving a benefit from a Pooled Registered Pension Plan.
- Explain how each of the factors may impact the suitability of withdrawing from a Pooled Registered Pension Plan, such as:
- Risk tolerance
- Effect on current cash flow
- Effect on future cash flow (impact on value of future pension benefit)
- Effect on current net worth
- Effect on future net worth
- Fiscal discipline of individual
- Psychological impact from decision
- Impact on pension adjustment
- Expected tax rate at time of receipt of pension benefit
- Impact of future receipt of pension benefits on government benefits
- Evaluate how each of the factors may impact the suitability of withdrawing from a Pooled Registered Pension Plan.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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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
Read more about the Taxonomy used in the FP-BoK
