knowledge topics
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.
- Employer
- Beneficiary
- Trustee
- 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.
- Contributions
- Refundable tax treatment
- Income earned in the plan
- Income received by employee from the 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
