Key Takeaway: The Canada Pension Plan was established in 1966 as a national social insurance program to provide retirement, disability, and survivor benefits to eligible individuals. The benefits provided by the Canada Pension Plan, including retirement, disability, and survivor benefits, offer financial security to Canadians during times of need, and can help reduce poverty among…
Key Takeaway: When determining a discount rate for pension funds, it is important to consider factors such as interest rates, inflation, actuarial assumptions, investment return, and plan sponsor\’s risk tolerance. These factors can greatly impact the amount of future liabilities. There are three main methods to calculate pension discount rates, including the yield curve approach,…
Key Takeaway: The maximum pension contribution amount for tax relief is 40,000 per year, although there are certain exceptions and additional rules which may affect this amount. This limit includes contributions from the individual, their employer, and any third-party contributions. Tax relief on pension contributions works by reducing an individual’s taxable income by the amount…
Key Takeaway: The Guaranteed Minimum Pension (GMP) is a minimum amount of pension that an employer-sponsored pension scheme must provide to its members. It is guaranteed by the government and is based on a calculation of a member’s service and salary history, up to a certain date. GMP calculation can be complex and depends on…
Key Takeaway: Determine your state tax rate: The first step in calculating how much state tax to withhold from your pension is to determine your state tax rate. Your state’s Department of Revenue website can provide this information. Calculate your pension income: Once you have your state tax rate, you need to calculate your pension…
Key Takeaway: Canada Pension cheques for December arrive on a specific schedule: The exact date of arrival can vary depending on the payment method, schedule of payment, and any holidays or weekends occurring in December. Factors affecting the date of arrival include payment method: Those who receive direct deposit typically receive their payment earlier than…
Key Takeaway: A multi employer pension plan (MEPP) is a retirement plan that is shared by multiple employers, typically in the same industry or geographic area. MEPPs aim to provide retirement benefits to employees who work for different employers, but are members of the same union or industry association. The advantages of a MEPP include…
Key Takeaway: The National Pension Scheme (NPS) is a retirement savings scheme available to all Indian citizens between the ages of 18 and 65. It is administered by the Pension Fund Regulatory and Development Authority (PFRDA). The interest rate for NPS Tier I and Tier II accounts is determined by the PFRDA and reviewed quarterly….
Key Takeaway: The Pension Plan for Congress provides retirement benefits to members of Congress, including senators and US representatives. Eligibility for the pension plan requires specific criteria, including age and years of service. Congresspeople must serve at least 5 years to be eligible for a pension and become vested in the plan after 3 years…
Key Takeaway: Knowing the types of pension funds is crucial for anyone planning for retirement. The three main types are: defined benefit, defined contribution and hybrid pension funds. It is important to note that Retirement Savings Account (RSA) and Individual Retirement Account (IRA) are not types of pension funds, but they are other retirement savings…
Key Takeaway: The Kentucky pension changes of 2017 include reduced benefits for new teachers and increased employee contributions for both teachers and state employees. Changes to retirement age and eligibility requirements have also been implemented, affecting all pension plan members. Protests and legal challenges have been raised against the changes, which have a significant impact…
Key Takeaway: Deferring your state pension can increase your weekly payments: if you defer your state pension, you will receive an increase in your weekly payout when you do decide to claim it. The increase amount is dependent on how long you defer and the amount of your pension. Deferring your state pension can provide…