Retirement Compensation Agreement (RCA)
KNOWLEDGE EXPECTED OF: CFP® Professionals Only
- Define a retirement compensation agreement.
- Explain the purpose of a retirement compensation agreement.
- Explain the advantages of a retirement compensation agreement, such as:
- Larger retirement income may be provided than pension plan
- Contributions in excess of Registered Retirement Savings Plan
- Creditor protection
- Define the parties to a retirement compensation agreement.
- Canada Revenue Agency
- Explain the events when an employee may access the benefits provided by a retirement compensation agreement.
- Upon retirement
- Upon the loss of employment
- Upon substantial changes to the services the employee provides
- Explain how the value of the contributions made by an employer must compare to the value of the contributions made by an employee to a retirement compensation agreement.
- Explain the tax treatment of retirement compensation agreements.
- Refundable tax treatment
- Income earned in the plan
- Income received by employee from the plan
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To state exactly the meaning of
To be aware of / to recognize and correctly name / to locate an appropriate resource
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To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
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To give the meaning of / to construe or understand / to translate orally