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. Registered Retirement Income Fund ...

    A retirement fund similar to an annuity contract that pays out ...
  2. Registered Pension Plan - RPP

    A form of a trust that provides pension benefits for an employee ...
  3. Money-Purchase Pension Plan

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

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

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

    A retirement plan in which a certain amount or percentage of ...
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. Starbucks As An Example Of The Value ...
    Investing News

    Starbucks As An Example Of The Value ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center