BoK Statement

Define a supplemental executive retirement plan.
Explain the purpose of a supplemental executive retirement plan.
Identify the methods for funding a supplemental executive retirement plan, such as:
- Employer contributions
- Retirement Compensation Agreement
- Letter of credit
- Insurance arrangement
Explain the advantages of a supplemental executive retirement plan, such as:
- Larger retirement income over what may be provided by a pension plan alone
- Potential for annual contributions to exceed that of allowable Registered Retirement Savings Plan limits
- Creditor protection
Define the parties to a supplemental executive retirement plan.
- Employer
- Beneficiary
- Trustee
Explain when contributions to a supplemental executive retirement plan may be tax deductible to the beneficiary.
Explain how income received from a supplemental executive retirement plan by the beneficiary is treated for tax purposes.

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