| Active
Member |
| An
employee of a participating employer for whom the Capital Pension
Plan is receiving required contributions |
|
| Annual
Rate of Return |
| measures
the change in market value of an investment fund over the fiscal
period. For the Capital Pension Plan, the annual rate of return
measures the change in market value from January 1st to December
31. |
| |
| Annuitant |
| A
Plan member who purchases an annuity and will receive payments from
that annuity |
| |
| Alternate
Beneficiary |
|
If
a Plan member has a spouse, alternate beneficiaries are persons
appointed by the member to receive survivor benefits from the
Plan in the event the spouse predeceases the Plan member (see
also "Spouse").
|
|
|
| Adopting
Resolution |
| A
resolution passed by the Board of Directors of an employer adopting
the Plan. The adopting resolution will specify the rate of required
employer and employee contributions, the eligibility criteria for
employees to join the Plan and the vesting period for employees. |
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| |
| Bonds
(investment) |
| a
debt instrument with the promise to pay a specified amount of interest
and to return the principal amount on a specified maturity date. |
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| |
| Compound
Rate of Return |
| The
rate of return that accounts for "interest on interest". |
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| |
| Defined
Contribution Pension Plan |
| a
Plan in which the contribution required from the employer and the
employee is known upfront. The value of the pension depends on what
may be purchased by the total accumulated contributions plus investment
earnings. |
| |
| Designated
Beneficiary |
|
| The
person or persons whom the member has appointed to receive survivor
benefits from the Plan in the event of the member's death. If the
member has a spouse, the spouse is the employee's designated beneficiary
(see also "Alternate Beneficiary
and "Spouse"). |
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| |
|
Early
Retirement Date
|
| Your
Early Retirement Date is the earliest date that you qualify for
retirement, based on the Plan's retirement provisions. It is either
when you turn age 50 (for most members), or when your age plus your
pensionable service totals 75. |
| |
| Earnings |
| as
defined in the employer's adopting resolution; or if not defined
in the employer's adopting resolution, the amount of basic remuneration
and other components of compensation and taxable benefits received
while an Plan member is employed with a participating employer and
may include prescribed compensation as permitted and described in
the Income Tax Act (Canada). |
|
|
| Eligible
Equity |
| For
Saskatchewan employees enrolled in the Capital Pension Plan prior
to January 1, 1994, a portion equivalent to 50% of their employee
required contributions (with investment earnings thereon) made to
the Plan prior to January 1, 1994 becomes unlocked and may be withdrawn
as cash once the employee terminates employment with a participating
employer. |
|
|
| Equity
(investments) |
| investments
consisting primarily of common stocks |
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| |
| Full-time
Employee |
| as
determined by the employer. Typically, a full-time employee may
be defined as an employee who regularly works more than 30 hours/week. |
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| |
| Guarantee
Period |
| see
Minimum Payment Period |
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| |
| Inactive
Plan Member |
| An
employee who has terminated employment with a participating employer
and chose to leave his/her equity with the Capital Pension Plan
|
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| |
| Joint
& Last Survivor Life Annuity |
| a
type of life annuity that guarantees a series of payments for the
lifetime of the annuitant and, in the event of the annuitant's death,
the annuitant's spouse. |
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| |
| Life
Annuity |
| a
contract that guarantees a series of payments for the lifetime of
an annuitant in exchange for a lump sum investment. A Single Life
Annuity guarantees a payments for the lifetime of the annuitant
only. A Joint & Last Survivor Life Annuity guarantees payments
for the lifetime of the annuitant as well as the annuitant's spouse
(at the time the annuity contract is established). |
|
|
| LIRA
(Locked-in Retirement Account) |
| A
Locked-in Retirement Account (LIRA) is a type of RRSP in which the
release of funds is prohibited by pension legislation, unless the
release is in the form of ongoing retirement income. A LIRA can
be used as a "holding account" for vested benefits from
a pension plan following the termination of employment prior to
retirement. A LIRA may also be referred to as a locked-in RRSP. |
|
| Locked-in
Equity |
|
Equity
that is not eligible for withdrawal from the Plan as cash. Locked-in
equity includes:
- employee
and employer required contributions (with investment earnings
thereon) if the employee terminates employment after they become
vested with the Plan; and
- any
equity transferred to the Plan on a locked-in basis.
|
| |
| Locked-in
RRSP |
| see
LIRA |
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| |
| Marital
Status |
|
For
the purposes of the Plan, marital status is defined as:
- Single:
the Plan member does not have a married or common-law spouse
(as described below). "Single" also includes Plan
members who are legally divorced or widowed.
- Married:
the Plan member has a spouse by legal marriage.
- Common-law:
a Plan member who is not legally married and who is cohabiting
with another individual as spouses for a defined period of time,
which may vary from among jurisdictions. "Common-law"
also includes individuals of the same gender.
|
|
| Minimum
Payment Period |
| a
provision under a life annuity in which payments are guaranteed
to continue for a specified number of years (i.e. 0, 5, 10 or 15
years), even if death occurs before the end of the specified period.
|
| |
| Money
Market (Investment) |
| a
type of Fund that invests primarily in treasury bills and other
low-risk short-term investments. |
| |
| Money-purchase
Pension Plan |
| see
Defined Contribution Pension Plan |
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| |
| Non-Locked-in
Equity |
- Equity
that is eligible for withdrawal from the Plan as cash. Non-locked-in
equity includes:
employee
required contributions (with investment earnings thereon) if
the employee terminates employment before becoming vested.
- any
additional voluntary contributions (with investment earnings
thereon) made by the Plan member.
|
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| |
| Participating
Employer |
| A
corporation, company or agency that has chosen to participate in
the Capital Pension Plan and has adopted the Plan by resolution.
|
|
|
| Part-time
Employee |
| as
determined by the employer. Typically, a part-time employee may
be defined as an employee who regularly works less than 30 hours/week. |
|
|
| Pensionable
Service |
| Service
or employment for which contributions were received by the Capital
Pension Plan. |
|
|
| Plan
member |
| An
employee or former employee of a participating employer that has
equity in the Capital Pension Plan |
| |
| Prescribed
RRIF |
|
A
RRIF permitted under The Pension Benefits Act (Saskatchewan)
as a retirement income option for Saskatchewan members of
registered pension plans. Prescribed RRIFs operate the same as
"ordinary" RRIFs (see below) except:
- if
the Plan member has a spouse, the spouse's consent must be obtained
before the prescribed RRIF can be established; and
- if
the Plan member has a spouse, the spouse must be the beneficiary
of the prescribed RRIF, unless the spouse waives the right.
See
also RRIF
|
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| |
| Real
Estate (Investment) |
| a
type of Fund that invests in properties to produce income and capital
gains. |
| |
| Risk
(investment) |
| the
potential that the actual return will differ from the expected return.
|
| |
| RRIF
(Registered Retirement Income Fund) |
|
RRIFs
are funds for individuals, established at financial institutions
and registered under the Income Tax Act (Canada), that
provide income in retirement. The equity of the RRIF is invested,
based on the investment guidelines of the RRIF purchaser. At the
same time, individuals are able to draw income from the RRIF.
Amounts
withdrawn from RRIFs are taxable. A minimum amount must be withdrawn
from a RRIF each year, beginning in the year after the RRIF is
established. The maximum that may be withdrawn from a RRIF is
the entire value of the RRIF. RRIFs provide flexibility in the
amount of retirement income that may be received from year to
year. RRIFs do not provide guaranteed lifetime retirement income.
If withdrawals continue to exceed investment earnings, it is possible
to "outlive" the RRIF.
|
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| |
| Saskatchewan
Member |
| if
a member was employed in Saskatchewan when he/she last contributed
to the Capital Pension Plan, the member is deemed to be a Saskatchewan
member of the Plan, even if that member subsequently moved to another
province. |
| |
| Specified
Beneficiary |
|
A
specified beneficiary relates to a Variable Benefit. If you have
a spouse (married or common-law), your spouse is your specified
beneficary. In the event of your death, your spouse as your specified
beneficiary is entitled to receive the survivor benefits from
your Variable Benefit account and may choose to:
- continue
receiving periodic payments from the Variable Benefit account;
or
- receive
a lump sum, fully taxable payment of the entire balance remaining
in the Variable Benefit account; or
- transfer
all or part of the Variable Benefit account to a P-RRIF or LIRA
with a financial institution.
|
| |
| Spouse |
- For
the purposes of the Plan, a spouse is defined as:
a
person who is married to a Plan member; or
- if
the Plan member is not married, a person with whom the employee
is cohabiting in a spousal relationship for a defined period
of time, which may vary among jurisdictions.
|
|
| Survivor's
Benefit |
| a
benefit payable to a Plan member's spouse or designated beneficiary
in the event of the Plan member's death. |
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| |
| Vesting
Status |
|
Vesting
refers to the point in time when a Plan member becomes unconditionally
entitled to ownership of the employer's required contributions.
Vesting
occurs at the earlier of:
- the
completion of a period of employment established in a participating
employer's adopting resolution (not to exceed 2 years of continuous
service); or
- the
completion of 2 years of employment with one or more participating
employer(s); or
- the
date of the Plan member's death; or
- the
date the Plan member turns age 65.
|
|
| Variable
Benefit |
|
The
Variable Benefit is a pension income option available to Plan
members within the Saskatchewan jurisdiction. You don't have to
be currently living in Saskatchewan to be in the Saskatchewan
jurisdiction. If you were employed in Saskatchewan when you made
your last contribution to the Capital Pension Plan, you are eligible
for a Variable Benefit when you retire, even if you no longer
live in Saskatchewan.
The
Variable Benefit operates much like a Prescribed RRIF that is
available from many financial institutions. The exception is that
your money remains with the Capital Pension Plan during retirement.
Your investment earnings continue to accrue in you account on
a tax-deferred basis.
At
the same time, you receive regular retirement income from your
Variable Benefit account. You have the flexibility to decide how
much income you wish to receive, and to periodically adjust this
amount to meet changing needs or cover unexpected expenses. All
income or withdrawals from your Variable Benefit are fully taxable
in the year they are received.
Like
a P-RRIF, the Variable Benefit does not provide guaranteed lifetime
income. Your payments and withdrawals must be monitored to ensure
your money lasts the length of time you desire during retirement.
|
| |
| Volatility |
| the
potential for investment returns to fluctuate from year to year
|
| |
| Year-to-date
Rate of Return |
| a
return that measures the change in market value of an investment
fund from the beginning of the fiscal year to the current date.
For the Capital Pension Plan, the year-to-date rate of return declared
at the start of each week measures the change market value from
January 1st to market close on Friday of the previous week. |
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