PPAC 1 – INTRODUCTION TO PENSION PLANS

Registered Pension Plan Fundamentals

• Pension plans – what are they?
• The implement/no implement decision
• Key pension terminology & definitions
• Pension plan documentation
• The major players
• Practical exercise – interpreting the plan document

Pension Plan Legislation and Design Basics

• Legislative overview
• The Income Tax Act
  • who enforces
  • impact on plan design
• Minimum standards legislation
  • who regulates
  • impact on plan design
• Pension plan types
  • defined benefit
  • defined contributions
• Risks by plan type
• Practical exercise – plan compliance with legislation

Retirement Income Basics

• The sources of income at retirement
• Government sources
  • CPP; OAS; GIS
  • income replacement ratio tool
• Employer sources
  • DB, DC, other CAPS
  • vehicles for locked-in/non locked RPP funds
• Personal and other savings
  • savings, investments; home equity; SPP
• Protecting the income streams
  • tax planning
  • life insurance, estate affairs, etc.
• Practical exercise – DB calculations & income replacement

Communicating the Pension Message

• What is communication?
• Communication vs disclosure
• The pension communication policy
• Communication error liabilities
• Employer communication challenges
• Tool kit for communication
  • media, methods & tools
  • budgeting & professional help
• Create the “right” implementation plan