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Quiz: RPP — Money Purchase provision

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1 A member's money purchase account earned substantial investment returns this year. How does that affect her pension adjustment and her contribution limit? Earnings are neither part of the PA nor counted against the money purchase limit Earnings count against the limit but are excluded from the PA Earnings are added to the PA and count against the money purchase limit Earnings are included in the PA but not counted against the limit

Answer key unconfirmed — rests on 1 unverified claim.

2 A member participates in money purchase provisions under two different employers' plans. How does the money purchase limit apply? Per member across all money purchase provisions Per plan, so each plan may receive up to the limit Per member, but only within plans of related employers Per employer, so each employer may contribute up to the limit

Answer key unconfirmed — rests on 2 unverified claims.

3 What is the pension adjustment under a money purchase provision? Employer and member contributions, including voluntary contributions Employer contributions, required member contributions, and reallocated forfeitures credited to the member for the year The increase in the member's account balance over the year Employer contributions only

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4 A member forfeits an unvested amount in March. By when must it be dealt with? There is no deadline, provided it is not left permanently unallocated By the end of the year following the year of forfeiture By the end of the year of forfeiture Within 60 days of the forfeiture

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5 Which of these is true of a money purchase provision but not a defined benefit provision? It reports the PA in box 52 of the T4 Plan amendments must be filed within 60 days It does not require a periodic actuarial valuation Benefits must begin no later than the end of the year the member turns 71

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6 A retiring member wants income paid directly out of her money purchase account rather than buying an annuity. Is that possible? No — a money purchase provision must always be converted to an annuity Yes, without conditions, at the member's election Yes — a money purchase provision may permit variable benefit payments from the plan, subject to prescribed conditions including minimum annual payment requirements Only where the plan also contains a defined benefit provision

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7 When does a pension adjustment reversal arise under a money purchase provision? On any year in which the PA exceeded the member's actual entitlement On termination, where the member receives less than the total pension adjustments reported for them On retirement, restoring room the member did not use Whenever a forfeiture occurs in the plan

Answer key unconfirmed — rests on 1 unverified claim.

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