03.03.10 – Liquid assets – Main savings instruments

NGS PLANS

FEATURES

IMPACT ON BENEFIT

Deferred profit sharing plan

(DPSP)

Amounts deposited by an employer for the benefit of its employees out of the profits of the business.

Before payment:

trust property is not part of beneficiary’s patrimony

At time of payment:

if withdrawn by periodic payment once a year: Liquid assets counted on last day of month, taking into account applicable exemptions

if annuity purchased: Income, net earnings and benefits counted dollar for dollar

Registered

Pension Plan

(RPP)

Fund made up of employer and employee contributions to provide for payment of a retirement pension.

Property totally excluded.

Locked-in RRSP or locked-in retirement account (LIRA)

Fund made up of transfer from an RPP or from a DPSP that cannot be withdrawn before the age of retirement.

Property totally excluded.

Non locked-in RRSP

Amounts deposited by an individual in a financial institution to provide a pension income when the plan matures.

Liquid assets excluded to a maximum of $60,000.

Registered Retirement Income Fund (RRIF)

Individual who uses funds that belong to him or her. During term of deposit, financial institution pays a retirement income determined on basis of

age of individual or of individual's spouse.

Capital: Liquid assets excluded to maximum of $60,000.

Minimum amount, or excess withdrawn,

at beneficiary's option once a year or monthly: Retirement income taken into account for benefit calculation purposes dollar for dollar.

Life income fund (LIF)

Purchase of a life income fund from a trust or life insurance company.

Income, earnings and benefits counted for benefit calculation purposes dollar for dollar.

N.B.: The fund is not part of the recipient’s patrimony.

Fixed-term retirement savings contract

RRSP for which it is possible to identify a beneficiary at death whether or not related to the contributor by blood. Contributor may withdraw amounts deposited, before plan matures.

Liquid asset of contributor excluded to a maximum of $60,000.

Registered Education Savings Plan

Amounts deposited by an individual for the benefit of a beneficiary so that he or she may have funds at time of maturity

to pursue post-secondary education. Contributions are the property of the contributor and may be returned to contributor before maturity.

For subscriber: Liquid assets taken into account for benefit calculation purposes according to basic exclusions.
For designated beneficiary at maturity: Income, earnings and benefits taken into account for benefit calculation purposes dollar for dollar.

N.B.: for a dependent child at school: Income incidental to studies excluded.