Money-Purchase Provisions

AAA

DEFINITION of 'Money-Purchase Provisions'

The terms of a registered pension plan that detail the specific amounts that an employer and employee contribute to the plan. The amounts may be stated in dollars or percentages. The provisions of the pension plan states the maximum amount of the employee's contribution that can be matched by the employer. Money-purchase provisions for registered plans must fall under the governing requirements outlined by the Government of Canada

INVESTOPEDIA EXPLAINS 'Money-Purchase Provisions'

Aside from the government's requirements that the money-purchase provisions must meet, the company offering the registered pension plan also adds its own terms that an employee must follow to qualify for the employer's matching contributions.

RELATED TERMS
  1. Money-Purchase Pension Plan

    A pension plan to which employers and employees make contributions ...
  2. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  3. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
  4. Defined-Contribution Plan

    A retirement plan in which a certain amount or percentage of ...
  5. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
  6. Registered Retirement Income Fund ...

    A retirement fund similar to an annuity contract that pays out ...
Related Articles
  1. Saving For Retirement: The Quest For ...
    Retirement

    Saving For Retirement: The Quest For ...

  2. Will Your Retirement Income Be Enough?
    Retirement

    Will Your Retirement Income Be Enough?

  3. When should I take my Canadian Pension ...
    Retirement

    When should I take my Canadian Pension ...

  4. The Economics of Hulu, Netflix, Redbox ...
    Investing News

    The Economics of Hulu, Netflix, Redbox ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center