Podcast
Questions and Answers
Why do employers provide supplementary executive/employee retirement arrangements (SERPs)?
Why do employers provide supplementary executive/employee retirement arrangements (SERPs)?
- To reduce overall labor costs
- To attract and retain executive and highly skilled employees (correct)
- To comply with government regulations
- To simplify the retirement process for employees
How do SERPs offer flexibility compared to traditional retirement plans?
How do SERPs offer flexibility compared to traditional retirement plans?
- They offer lower pension benefits to all employees
- They are tailored to individual needs, offering more or less generous pensions (correct)
- They are mandatory for all employees
- They have stricter eligibility criteria for participation
What is the primary purpose of supplementary retirement arrangements like SERPs in competitive markets?
What is the primary purpose of supplementary retirement arrangements like SERPs in competitive markets?
- To enhance the total compensation package and maintain a competitive advantage (correct)
- To discourage mid-career executives from joining the company
- To promote salary reductions
- To increase employee turnover
What is the concept of 'Top-up Plans' in supplementary retirement arrangements?
What is the concept of 'Top-up Plans' in supplementary retirement arrangements?
What criteria may influence how SERP provisions are structured to meet the needs of employees in senior positions?
What criteria may influence how SERP provisions are structured to meet the needs of employees in senior positions?
Why might employers establish supplementary retirement plans for mid-career hires?
Why might employers establish supplementary retirement plans for mid-career hires?
What is a key consideration for employers when deciding if employees will be required to contribute to a funded Retirement Compensation Arrangement (RCA)?
What is a key consideration for employers when deciding if employees will be required to contribute to a funded Retirement Compensation Arrangement (RCA)?
What is the main advantage of funding a supplemental plan using a Retirement Compensation Arrangement (RCA)?
What is the main advantage of funding a supplemental plan using a Retirement Compensation Arrangement (RCA)?
Under the Income Tax rules, what is a specific arrangement excluded from the definition of a Retirement Compensation Arrangement (RCA)?
Under the Income Tax rules, what is a specific arrangement excluded from the definition of a Retirement Compensation Arrangement (RCA)?
What scenario would likely prompt the use of a retiring allowance?
What scenario would likely prompt the use of a retiring allowance?
Why do some companies believe funding executive pensions is inappropriate?
Why do some companies believe funding executive pensions is inappropriate?
What limits apply under the Income Tax rules on retirement allowance amounts that can be transferred to Registered Pension Plans (RPPs) or Registered Retirement Savings Plans (RRSPs)?
What limits apply under the Income Tax rules on retirement allowance amounts that can be transferred to Registered Pension Plans (RPPs) or Registered Retirement Savings Plans (RRSPs)?
What best describes a retiring allowance?
What best describes a retiring allowance?
Why are supplementary retirement arrangements often noncontributory?
Why are supplementary retirement arrangements often noncontributory?
What is a key advantage of an employer-sponsored group TFSA over individual TFSA accounts?
What is a key advantage of an employer-sponsored group TFSA over individual TFSA accounts?
In what situation would a Canadian aged 71 or older prefer a TFSA over an RRSP?
In what situation would a Canadian aged 71 or older prefer a TFSA over an RRSP?
What distinguishes VRSPs from PRPPs in terms of employer contributions?
What distinguishes VRSPs from PRPPs in terms of employer contributions?
What is a characteristic feature of employee savings plans concerning company contributions?
What is a characteristic feature of employee savings plans concerning company contributions?
When is a stock option plan typically granted to eligible employees?
When is a stock option plan typically granted to eligible employees?
What is the primary purpose of a Share Appreciation Rights plan offered by companies?
What is the primary purpose of a Share Appreciation Rights plan offered by companies?
How are funds held in a savings or thrift plan designed to acquire shares of company stock?
How are funds held in a savings or thrift plan designed to acquire shares of company stock?
What is a characteristic feature of a Deferred Share Unit Plan with respect to payments?
What is a characteristic feature of a Deferred Share Unit Plan with respect to payments?
What is the purpose of a secular trust?
What is the purpose of a secular trust?
Under the ITA deeming rules, what does an employer acquiring an interest in a life insurance policy for retirement benefits trigger?
Under the ITA deeming rules, what does an employer acquiring an interest in a life insurance policy for retirement benefits trigger?
What is the main reason an employer might establish a profit-sharing plan according to the text?
What is the main reason an employer might establish a profit-sharing plan according to the text?
What types of profit-sharing plans operate in Canada according to the text?
What types of profit-sharing plans operate in Canada according to the text?
What is a characteristic of employee's profit-sharing plans (EPSPs) according to the text?
What is a characteristic of employee's profit-sharing plans (EPSPs) according to the text?
What is a key characteristic of a tax-free savings account (TFSA) as described in the text?
What is a key characteristic of a tax-free savings account (TFSA) as described in the text?
How are policy payments treated under the special deeming rules applied by the ITA?
How are policy payments treated under the special deeming rules applied by the ITA?
What does the RCA trust receive when an employer fails to provide the next letter of credit?
What does the RCA trust receive when an employer fails to provide the next letter of credit?
Why might immediate taxation due to vesting provisions lead to inequities with EPSPs?
Why might immediate taxation due to vesting provisions lead to inequities with EPSPs?
What tax treatment do employee's profit-sharing plan (EPSP) contributions receive according to the text?
What tax treatment do employee's profit-sharing plan (EPSP) contributions receive according to the text?
Employer-sponsored group TFSA offers no tax benefits beyond registered plans.
Employer-sponsored group TFSA offers no tax benefits beyond registered plans.
Individuals aged 60 or older would typically opt for an RRSP over a TFSA.
Individuals aged 60 or older would typically opt for an RRSP over a TFSA.
PRPPs and VRSPs both require mandatory employer contributions.
PRPPs and VRSPs both require mandatory employer contributions.
Cash withdrawals are not permitted in employee savings plans.
Cash withdrawals are not permitted in employee savings plans.
Companies do not offer Stock Appreciation Rights plans to employees.
Companies do not offer Stock Appreciation Rights plans to employees.
In a savings or thrift plan designed to acquire shares of company stock, funds are held by the sponsoring corporation.
In a savings or thrift plan designed to acquire shares of company stock, funds are held by the sponsoring corporation.
Employee stock option plans grant employees options to purchase company stock at fluctuating prices.
Employee stock option plans grant employees options to purchase company stock at fluctuating prices.
Employer-sponsored group TFSAs do not benefit from employer oversight of investment fund managers.
Employer-sponsored group TFSAs do not benefit from employer oversight of investment fund managers.
Deferred Share Unit Plans offer immediate payment upon retirement.
Deferred Share Unit Plans offer immediate payment upon retirement.
Pooled Registered Pension Plans (PRPPs) are only administered by unregulated financial institutions.
Pooled Registered Pension Plans (PRPPs) are only administered by unregulated financial institutions.
