Life Agents (provincial requirements): 3.0 hours, Eligible in BC, AB (AIC# 34895), SK, MB, ON
CFP® certificants: This course qualifies for 3.0 FPSC-approved CE credits in the Financial Planning category.
FORMAT: Course Notes in PDF format (print them or read them online). You must pass an online Course Quiz to obtain CE credits. Best viewed on PC/MAC full screen. May not be compatible with all mobile devices (smartphones, tablets).
COURSE DESCRIPTION: Almost 40% of Canadian employees belong to some form of registered employer pension plan (RPP). Others belong to different employer-sponsored retirement savings plans such as Deferred Profit Sharing Plans (DPSPs) and Supplementary Employee Retirement Plans (SERPs).
Employees may need to decide whether or not to participate in the plan, whether to buy back past service, what to do with the funds in the plan when leaving an employer, and how to turn the funds into a source of income once they retire. Pension plans are complex and tend to be poorly understood by many employees. As a financial advisor, you need to help your clients become more knowledgeable about this key component of retirement savings.
This course examines the major decisions that employees typically must make with regard to their pension plans. After completing this course, you should be able to:
- describe the major forms of registered and non-registered retirement savings plans offered by employers;
- explain how pension plans are regulated in Canada;
- determine how participation in a pension plan impacts the calculation of RRSP contribution room;
- assist a client in deciding whether to buy back previous years of service under a defined benefit pension plan;
- evaluate the advantages and disadvantages of leaving funds in a pension plan versus taking the commuted value on leaving an employer with a defined benefit plan;
- describe the options available for receiving income from a locked-in plan (LIF, LRIF, PRIF) in retirement; and
- explain the circumstances where funds in a locked-in plan can be unlocked.
NOTE: You have one year from time of purchase to complete this course.
AUTHOR: Lynn Biscott, Fellow of FPSC
PUBLISHED: September 2012, Latest Edition September 2016
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