PPAC 1 Module 1 Test Questions & Answers 2024/2025
3 views 0 purchase
Module
PPAC 1 Module 1
Institution
PPAC 1 Module 1
PPAC 1 Module 1 Test Questions & Answers 2024/2025
What is a pension? - ANSWERSIt is a regular, periodic income for retirement used by pensioners/retirees. It is payable for the lifetime of the member.
Where is the pension benefit payable from? - ANSWERSFrom the pension fund.
What is the...
PPAC 1 Module 1 Test Questions &
Answers 2024/2025
What is a pension? - ANSWERSIt is a regular, periodic income for retirement used by pensioners/retirees.
It is payable for the lifetime of the member.
Where is the pension benefit payable from? - ANSWERSFrom the pension fund.
What is the legislation in Canada about members who have spouses? - ANSWERSThe pension is to be
paid as a J&S, unless a spousal waiver.
What is the pension fund? - ANSWERSIt is where the money is held. They oversee the investment and
receive contributions from HR.
What is an annuity - ANSWERSIt is a periodic income payable to the annuitant. It is purchased from an
insurance company or paid from a pension fund.
What type of payment is available for an annuity? - ANSWERSLifetime and fixed period.
What is a life annuity? - ANSWERSIt is a form of annuity purchased with locked-in monies.
What is a registered pension plan? - ANSWERSIt is provided and administered by a plan sponsor and
registered with pension regulatory bodies and complies with legislation.
Can the term plan sponsor be found in the legislation? - ANSWERSNo. It is only used by pension
consultants.
What is the regulatory body and legislation a pension plan needs to be registered under? - ANSWERSThe
Income Tax and provincial/federal pension standards legislation.
, What is a pension plan? - ANSWERSIt contains an ultimate promise upon retirement, death, disability or
termination. It must also sustain a pension fund.
Is the pension fund combined or separate from an employer's asset? - ANSWERSSeparate to protect the
interest of the plan members.
What is a defined benefit (DB) pension plan? - ANSWERSIt provides a specific amount of pension at
retirement based on a benefit formula.
What are the three common benefit formula for a DB plan? - ANSWERSFlat benefit or dollar, career
average and final average.
How is a DB plan funded? - ANSWERSIt must be pre-funded by plan sponsor contributions based on the
actuarial valuation, not the plan document.
What is a defined contribution (DC) pension plan? - ANSWERSIt is designed to provide an individual
account that will accumulate funds for retirement. It is based on contribution formula defined in the plan
text
How do DC plans get invested? - ANSWERSThrough pooled funds or mutual funds, it accumulates with
investment earnings, until retirement.
What can be done with the account balance in a DC plan? - ANSWERSIt can be used to purchase annuity
or transferred to another retirement vehicle.
What is a pension fund? - ANSWERSIt is a financial vehicle used to receive, and accumulate the pension
contributions and investment earnings.
Who holds the pension fund? - ANSWERSBy a trust or an insurance company.
What is a pension fund made up of? - ANSWERSEmployer and employee contributions, including earned
interest and earned investment income.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller wanjejer1900. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.75. You're not tied to anything after your purchase.
