For CPAS DC plans, the system supports four types of funds: Unitized A fund that fluctuates directly with the value of the securities held in the fund., Interest bearing A daily interest savings fund where interest is earned on each day's final balance., Money Market A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large certificates of deposit. Also referred to as money market mutual fund (MMF). and GIC Guaranteed Investment Certificate - Deposit instruments most commonly available from trust companies, requiring a minimum investment at a pre-determined rate of interest for a stated term.. A special type of Interest fund, called a Cash Account, is used to hold cash in a member/investor's account. Like other funds, money in Cash Accounts is subject to vesting and locking-in rules.
A member may have several Cash Accounts, typically for the different currencies that a Plan/Investment Account supports. Money can be transferred from a fund into a Cash Account or from a Cash Account to another fund.
When deposits come into the plan, they are first placed in members' Cash Accounts and then allocated to other funds. Deposits do not have to be 100% allocated. The unallocated deposits remain in the Cash Accounts unless specified otherwise under Operation Control. For more information, see How to Make Cash Deposits.
Whether in-service withdrawals are allowed or not, is specified for each contribution source class at the Product level. Withdrawals of locked-in and non-locked in money are further limited to specified payment types. For more information, see How to Make Withdrawals.
CPAS Version 5 supports Inter-fund Transfers or Switches. For more information, see How to Perform a Transfer or Switch.
Proceeds from redemptions are stored under Disbursements in the member's record and cheques are then drawn from there. Unlike Cash Accounts, there is only one Disbursements folder per member and it can store money in different currencies.
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