The pension adjustment for a defined contribution pension


Identify the false statements.

I. The pension adjustment for a Defined Contribution Pension Plan is calculated as [9 x Earnings Rate x Pensionable Earnings] - $600.

II. An unmarried recipient of a corporate pension plan can choose a guaranteed period, with any remaining payments in the period paid to the beneficiary's estate should he/she die before the period is up.

III. RRIF withdrawals qualify as pension income that can be split for tax purposes between spouses younger than 65.

IV. Contributions to a spousal RRSP are deductible only to the contributing spouse.

V. TFSA plans must be collapsed by December 31 of the year in which the owner turns 71.

VI. LIRA assets must eventually be transferred into either a registered life annuity or a LIF.

a) II, IV and VI

b) I, III and V

c) I, II and III

d) IV, V and VI

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Finance Basics: The pension adjustment for a defined contribution pension
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