415 Limit

For US Plans. The limit on the amount of retirement benefit that can be provided to a participant in a defined benefit plan or the limit on the addition of the contributions and forfeitures to a participant's account in a defined contribution plan.

Accrued Benefit

Pension benefits accrued from the date of joining the pension plan to the date of calculation, including past service pension entitlements, if any.

Accrued Interest

Interest that has been earned but not received.

ACH

Automated Clearing House

Active Member

A plan member who has not retired, terminated employment, or died and is currently accruing benefits under the terms of the Plan.

Actuarial Assumptions

The mortality tables and interest rates specified by the actuary for valuation, benefit calculations, and other pension plan purposes.

Actuarial Equivalent

An amount determined by an actuary as having the same value as another future stream of payments. For example, under a given set of actuarial assumptions, a lifetime monthly benefit of $67.60 beginning at age 60 can be said to be the actuarial equivalent of $100 a month beginning at age 65. The actual benefit amounts are different but the present value of the two benefits, considering mortality and interest, is the same.

Actuarial Factors

A table of equivalents as prepared by the actuary giving the amounts payable (usually at early retirement ages or on specific optional forms of pension), expressed as a percentage of the normal pension.

Actuarial Valuation

A financial examination of a pension plan to determine whether accumulating contributions will be sufficient to provide the promised pensions when due. The report includes a determination, as of a valuation date, of the normal cost, actuarial accrued liability, actuarial value of assets and related actuarial present values for a pension plan. This valuation is performed by the actuary usually every three years or more frequently if required by law.

Actuary

A person professionally trained in the technical and mathematical aspects of insurance, pensions and related fields. The actuary estimates the amount that must be contributed to a pension fund each year in order to pay the pension benefits that will become payable in the future.

Age Offset

An adjustment to the age (when entering a mortality table) to adjust for changes in the mortality rates since the table was prepared.

AIW

Average Industrial Wage

Allocate

To apportion (by amount or percentage) a cash or specie deposit among two or more individual funds.

Annuity

A sum of money payable yearly or at other regular intervals for the lifetime of the recipient or for a specified period of time.

Asset Mix

The proportions of investment types held by a pension or investment fund - usually expressed as a percentage of total investments in equities, fixed income, cash, etc.

Audit Trail

A continuous record of pension plan transactions that an auditor might require of the plan Administrator.

Auditor

A CPAS template version security role. Able to view the Money Log and Audit Trail.

Batch Processor

A CPAS system used to run batch routines.

Batch Scheduler

A CPAS feature that allows users to set up and run a batch job automatically using pre-defined start date/time, frequency, output, and other parameters.

Beneficiary

The person appointed by the plan member to receive any benefits payable from the Plan upon the death of the member.

Benefit

The amount of entitlement payable to a plan member as a result of termination, disability, or retirement or to a beneficiary following the death of a member.

Benefit Calculation Wizard

An interactive (step-by-step) wizard used to perform all benefit calculations.

Benefit Recipient

Any person receiving or entitled to receive plan benefits.

Book Value - security

The amount paid for the security at the time of purchase; the dollar value of a security on the company's books.

Book Value - trust fund

The value of the total contributions + net investment receipts minus the benefits or expenses paid out.

Break in service

The amount of time a member can be inactive in a pension plan and still have the right to benefits without penalty. For example, in Union plans where employees may be laid off, the plan text may allow a lapse of 2 years before a member is considered terminated for plan purposes.

Bridge Benefit

A benefit payable in addition to the basic retirement benefit, usually to a member who retires early. Bridge benefit payments cease at normal retirement age.

Browser configuration

The functional arrangement of browser parameters such as browser's title and view mode and column parameters such as caption, position, alignment and viewing privileges.

Buyback Service

Past service credits purchased by a member (if permitted by the terms of the Plan).

C.O.B.

Coordination of Benefits

CAD

Canadian dollars

Calculated Dates

Dates that the system calculates for each member, such as Date of Hire, Date of Termination, Early Retirement Date, or other specific date. Also called Dynamic Dates or Rule Dates. The Calculated Dates folder in Rules allows the user to add to the list of calculated dates.

Calendar Service

The number of years between two dates - used to determine periods of service.

Capital structure funds

Funds held within a specific fund complex whereby gains/loss on exchange are not realized until the monies leave the complex.

Career Average Compensation

Compensation averaged over an employee's entire service with an employer.

Career Average Earnings Plan

A defined benefit plan that specifies that the benefit is based on a member's annual average earnings over the entire period of membership in the plan or over the entire period of employment.

Carrier

A commercial provider or government agency that underwrites or administers programs for health, life or other insurance services.

Cash Balance Plan

A defined benefit pension plan in which the pension is based on a percentage of yearly earnings plus interest. Typically, on termination, the lump sum balance is paid and on retirement, the lump sum balance is converted to an annual pension based on specified annuity rates.

Cash Refund Pension

A form of pension which provides for a payment upon the death of a member equal to the value of the pension less the payments made to the member up to the date of death.

COLA

Cost of Living Adjustment

Column access

The ability to view or modify a column. For every template security role, each browser column is assigned a privilege tag (Full Access, Read Only, Hidden). For example, if a DBA role has 'Full Access' to a certain column, users designated as DBAs can view or modify that column. Other users may perhaps only view but not edit the column, and some may not see the column at all.

Common cell

A cell in an active window that is not selected.

Communication Centre Event

An individual step or milestone in a Process, as specified in the Process Catalog.

Communication Centre Process

A series of events (actions, operations) required to complete an administrative or business procedure, as specified in the Process Catalog.

Communication Centre Task

A piece of work assigned to an administrator or user, as specified via the Task wizard.

Commuted Value

The lump sum present value of the pension payments to be paid to a member for life based on the normal form of pension accumulated under the terms of the Plan. The lump sum value is calculated based upon the interest rate(s) and the mortality table recommended by the plan's Actuary.

Compensation

The amount of wages, salary, or income an employee receives for services performed for an employer. For the purpose of calculating pension benefits or contribution amounts, the plan may take into account only base compensation, or may include base pay and bonuses, commissions, and/or overtime pay (total compensation).

Compile

Compile means to transform manually written or system generated source code into an executable program.

Condition statement

Begins with IF and describes a stipulation that must be true to return the subsequent value statement.

Consumer Price Index (CPI)

A price index created by Statistics Canada to measure the percentage increase (or decrease) of the cost of a specified basket of goods and services to a representative Canadian urban family.

Continuous Service

Service rendered by a member without regard to periods of temporary suspension of employment for reasons stipulated in the terms of the plan. Most often used to determine eligibility or vesting rights (not benefits).

Contribution Rate

The contributions required to be made by the plan members, if any, and the contributions required by the Employer or Plan Sponsor as specified in the last valuation report of the actuary. The rate is usually expressed as a percentage of salary or payroll.

Contributions, Required

Contributions in the amount specified in the terms of the plan.

Contributions, Transferred

Contributions paid into a plan (for a member) that have been transferred from another pension plan.

Contributions, Voluntary

Contributions made by a member on a voluntary basis. The plan must stipulate that voluntary contributions are permitted.

Contributory Plan

A Pension Plan that requires members to make contributions.

Conventional load

Conventional path load builds an array of rows and uses an INSERT statement to load the data. Input records are analyzed according to the field specifications, and each data field is copied to its corresponding array. When the bind array is full (or no more data is left to read), an array insert is executed.

Conversion Factor

A number used to convert a pension from one form of payment to another or to convert a pension to a lump sum value. In CPAS Version 5, formulas can be set up to generate the required conversion factor.

CPAS DBA

CPAS Database Administrator - A high-level security role. In the CPAS Version 5 template version, users assigned to this role are allowed to perform many functions, including adding new users and modifying security roles and tags.

CPAS Manager

A template version security role. Able to view, but not modify security information.

CPAS Navigator

The CPAS Version 5 interface that provides access to the main functional areas (Participants, Employers, Rules, Accounts, Batches, CPAS Tools, Data Tools) and the online Help files.

CPAS Parameter

An effective-dated switch (typically Yes/No) used to specify a certain system behaviour (e.g. Unlock benefit at death?). Parameters must be defined at the Global level, but may also be specified at other levels (Product, Client, Plan) to supersede the global-level setting.

CPAS_PROXY

The role granted to all users that allows them to access the CPAS database via the CPAS Version 5 application.

CPI

Consumer Price Index

CPP

Canada Pension Plan

CRA

Canada Revenue Agency

CRA Limits

Canada Revenue Agency maximum pension limits or maximum transfer value limits.

Credited Service

Service credited to a member for the purpose of determining the amount of a member's pension, in accordance with the terms of the plan.

Crystal Reports

A Crystal Decisions (formerly Seagate Software) report-writer application.

CSR

Customer Support Representative

CUSIP

Committee on Uniform Security Identification Procedures - CUSIP is the trademark for the system that uniquely identifies securities and other instruments of general interest.

CWI

Contributions with interest

Database Access

Access to the tables, views, programs, and data contained in the CPAS database.

DCPP

Defined Contribution Pension Plan

Death Benefit

The payment made to the beneficiary or estate upon the death of a plan member, before or after retirement.

Deferred Annuity or Pension

An Annuity or Pension with payments commencing at a future date.

Deferred Income Taxes

Income tax that would otherwise be payable immediately, but is deferred by using larger allowable deductions in calculating income than those used in calculating net income in financial statements.

Deferred Profit Sharing Plan (DPSP)

A plan that provides benefits based on contributions made with reference to the profits of participating employers and defers tax on contributions and investment income until the member receives a benefit.

Deferred Retirement

On termination of employment a member may elect to receive a deferred Retirement Benefit commencing on the Normal Retirement Date.

Defined Benefit

A pension plan where the formula defines the benefit based on a member's service, average earnings etc. All contributions are put into a fund from which benefits are paid. Employee contributions may or may not be required. Employer contributions vary depending on how much is needed to fund the promised benefits.

Defined Contribution

A pension plan that requires a stated rate of contribution by the member, typically matched by the employer. Accumulated contributions and interest are used to buy benefits for the member at retirement.

Department of Labor (DOL)

The regulatory and administrative provisions (non-tax) of ERISA are administered by the DOL.

Direct load

A direct path load builds blocks of data in memory and saves these blocks directly into the extents allocated for the table being loaded. This process uses the field specifications to build whole blocks of data, and writes the blocks directly to Oracle data files, bypassing much data processing. Direct path load is faster than conventional load, but has some restrictions.

Disability benefits

Payments, usually monthly, made to a member who is not eligible to retire and who is totally and permanently disabled. The plan must specify that this form of benefit is available.

Disbursement

The act or process of disbursing or distributing benefits.

Dividend

An amount distributed out of a company's profits to its shareholders. A preferred dividend will remain at a fixed annual amount. A common dividend may fluctuate with the company's profits.

DOL

Department of Labor

DPSP

Deferred Profit Sharing Plan

EAP

Employee Assistance Program - An employer-sponsored program designed to assist employees to resolve personal and health concerns that may affect job performance.

Early Reduced Retirement Date

The date on which a member has met the requirements stipulated by the terms of the Plan to receive a reduced benefit. (The benefit is reduced as payments are assumed to be made for a longer period than if the member retired at the normal retirement age.)

Early Retirement

The requirements that a plan member must meet to be eligible to retire (and receive plan benefits) prior to reaching the Normal Retirement Age.

Early Retirement Age

The age at which a member may elect to retire prior to the normal retirement age stipulated in the terms of the Plan.

Early Unreduced Retirement Date

The date on which a member is eligible to retire (prior to the Normal Retirement Date) and receive an unreduced benefit. Typically determined from a calculation based on a member's age plus service.

Earnings

The earnings of the member as defined in the Plan document.

EBSA

Employee Benefits Security Administration

Effective Date

The date on which a specific event became effective. Often refers to the date a plan started, the date of a member's enrollment, or the date certain benefits or rules were introduced into the plan. May also be used in member status trail (active, suspended, on leave) records or in the employment history log of multi-employer plans.

EFT

Electronic File Transfer

EHC

Extended Health Care

Eligibility

The conditions that must be met to become a member of a plan or the date a member has the right to receive certain benefits from the Plan.

Eligibility Requirements

The conditions that must be satisfied for an employee to have the right to join the Pension Plan, as specified in the Plan document.

Employee Benefits Security Administration (EBSA)

Formerly know as Pension and Welfare Benefits Program, EBSA is responsible for administering and enforcing the fiduciary, reporting and disclosure provisions of ERISA.

Employee Profit Sharing Plan (EPSP)

A non-registered profit sharing plan where employer contributions are based on profit. All contributions and investment income are considered taxable income.

Employee Savings Plan

A non-registered group savings plan. There is no legislative definition of a Employee Savings Plan (ESP).

Enrollment

The process that adds an employee to the list of plan members (i.e. the employee has joined the plan).

Entry date

The date the member joined a plan. Also called Plan Entry Date.

EPSP

Employee Profit Sharing Plan

ERD

Early Retirement Date

ERISA

Employee Retirement Income Security Act (US) - a law passed by Congress in 1974 designed to set minimum standards for pension plans in private industry.

Error Handler

A CPAS Version 5 feature that allows advanced users to add new validations or modify existing ones.

ESP

Employee Savings Plan

EUA

Early Unreduced Age

Excess Benefit Percentage

The percentage of compensation at which employer-derived benefits are accrued with respect to compensation of participants above the integration levels.

Excess Contribution Test

This is usually referred to as the 50/50 rule test. The Pension Benefits Act of most provinces specifies that a member of a contributory pension plan is only required to make contributions equal to 50% of the cost of the pension for certain or all periods of membership. Contributions that exceed 50% of that cost are refunded on termination, retirement, or pre-retirement death of the member. (Canada)

Excess Contributions

The amount, if any, by which a member's required contributions to a pension plan, plus credited interest, exceeds 50% of the cost of the pension accumulated for certain or all periods of membership. (Canada)

Excess Plan (DB)

A defined benefit plan under which the rates for employer-provided benefits are determined with respect to average annual compensation.

Exposed Code

A CPAS feature that allows technical users with sufficient security privileges to view and/or modify certain elements of the source code from within the application. Exposed code modification is used to set up or edit Plan rules.

FAE

Final Average Earnings

FCR

Foreign Content Rebalance

FFPC

Fixed Fee Per Client

FFPF

Fixed Fee Per Fund

FFPM

Fixed Fee Per Member

FFPP

Fixed Fee Per Plan

FFPT

Fixed Fee Per Transaction or Request

FICA

Federal Insurance Contributions Act

FICA HI

Federal Insurance Contributions Act Hospital Insurance

FIFO

First In, First Out - See LIFO

Filter

Select data for processing or display.

Final Average Earnings Formula (FAE)

A type of pension formula that provides retirement benefits based on the average earnings of the member over a specified period of service, typically three or five years.

Final Average Earnings Plan

A defined benefit plan that takes into account the final average earnings of a member to determine the amount of pension accumulated by the member.

Final Average Pension

The amount of pension accumulated by a member based on the final average earnings of the member.

Final Average Salary

A measure of a participant's level of earnings that is based on his or her average rate of salary for a specified period of time, usually the three, five or ten years immediately preceding retirement. A participant's final average salary may be one of the factors used in determining the amount of his or her benefits.

Flat Benefit Pension Plan

A defined benefit plan in which the benefit is expressed as a fixed dollar amount for each year of service or membership. (e.g. $50 per month for each year of employment or membership service).

Flexible Benefit Plan

A pension plan that permits members to make contributions to obtain additional benefits not provided by the pension plan (e.g. bridge benefits or indexed pension payments after retirement).

Focused Cell

A cell in an active window that is selected (for editing or deletion etc.).

Forfeiture

If a termination calculation is performed before a member is fully vested, the money that is not vested may be forfeited.

Form View

A command that allows the user to view data in a form or list format for both browse and edit modes.

Form/List View

A command that allows the user to view data in either a form or list format for both browse and edit modes.

Frozen Pension

A pension of a fixed amount that will not increase with time for any reason.

Full Vesting

Refers to a member's right to receive all accumulated pension benefits.

Full Vesting Date

The date on which the member has the right to receive all accumulated benefits.

Fully Funded

A pension plan where the last valuation report indicates that the assets of the fund are sufficient to pay for the pension benefits accumulated by the members.

Functional access

On the system level, access to the main functional areas (Participants, Employers, Rules, Batches, CPAS Tools and Data Tools). On the database level, functional access is the ability to view, insert, update or delete data. A user's functional access is determined by his/her security role.

G/L

General Ledger

G/L Account Number

General Ledger Account Number

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.

Global Fund

A mutual fund that is invested in stocks and bonds all over the world, including the United States. By contrast, an international fund invests all over the world except in the United States.

Goods and Services Tax (GST)

A federal excise tax imposed on the provision of most goods and services in Canada.

Government Benefits

A benefit plan established and maintained by the government (e.g. Old Age Security, Canada Pension Plan).

Graded Vesting

A vesting schedule that calls for partial vesting for each period of service or membership (e.g. 20% for each period of service).

Group Benefits

A plan under which a number of employees and their dependants are insured for benefits under one employer policy. Common types of benefits include life, health, dental, etc.

GST

Goods and Services Tax - A federal excise tax imposed on the provision of most goods and services in Canada.

Guaranteed Annuity

An annuity that will be paid for a minimum guaranteed period. For example, if annuity is guaranteed for five years and the annuitant dies after three years, payments will be continued to a beneficiary or the estate for two more years.

Guaranteed Income Supplement

Aid provided to low-income retirees. Money is in addition to what is received from other sources, up to a guaranteed level of income.

Guaranteed Investment Certificate (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. Generally non-redeemable prior to maturity but there can be exceptions.

Hire Date

The date when the plan member first became an employee of the employer sponsoring the Pension Plan

HRDC

Human Resources Development Canada

HST

Harmonized Sales Tax (Canada)

Hungarian Notation

A set of conventions for naming data objects in which a programmer adds a meaningful prefix of one or several characters to the object's name to identify what type of object it is.

Hybrid Pension Plan

A pension plan that provides both defined benefits and defined contribution benefits to plan members.

IFIC

Investment Funds Institute of Canada

IMF

Investment Management Fee

Immediate Pension

A pension where payments commence immediately following the date the member retires.

Immediate Vesting

A condition whereby an employee has the right to receive a present or future pension benefit, immediately upon joining the plan.

Income Statement

A financial statement showing a company's revenues and expenditures that result in either a profit or a loss during a financial period.

Indexed or As Indexed (US)

The increase in certain limits and compensation amounts due to an increase in the cost of living. Many such limits in a qualified plan are indexed. (See 415 Limit for an example of a limit that is indexed.)

Indexed Pension

A pension that may change each year according to a formula. The change is based on an Index, typically the Consumer Price Index. The formula used is stated in the Plan Document.

Integrated Plan (US)

A plan in which benefits or contributions are integrated with Social Security Benefits.

Interest

The return earned or to be earned on funds invested or to be invested to provide for future pension benefits. In calling the return interest, it is recognized that, in addition to interest on debt securities, the earnings of a pension fund may include dividends on equity securities, rentals on real estate and gains or (as offsets) losses on fund investments.

Interest Fund

A daily interest savings fund where interest is earned on each day's final balance.

Investment Fund

Capital used by a company to invest in other companies. There are two principal types: closed-end and open-end or mutual fund. Shares in closed-end investment companies are readily transferable in the open market and are bought and sold like other shares. Capitalization is fixed. Open-end funds sell their own new shares to investors, buy back their old shares, and are not listed. Open-end funds are funds that do not have fixed capitalization; they normally issue more shares, as people want them.

IRA

Individual Retirement Arrangement

IRC

Internal Revenue Code

Irrevocable Beneficiary

A beneficiary that cannot be changed without the beneficiary's consent

IRS

Internal Revenue Service

ISP

International Service Participant

ITD

Inception to Date

Joint and Survivor Annuity

A form of pension payment that is paid during the lifetime of the member and continues to be paid either in the same or reduced amount to another individual following the death of the member. In most pension plans, the joint annuitant is the spouse. A variant is to provide for such reduction on the death of either the member or spouse.

KYC

Know Your Client

Level Income

A form of pension payment that provides a higher monthly pension to be paid from a pension plan to a member from retirement to the date the member reaches age 65 and a lower monthly pension thereafter. The purpose of this form of payment is to provide the member with level income payable from all sources before and after the date the member qualifies to receive government benefits such as OAS, CPP, or Social Security.

Levelling Age

The age at which the monthly pension payable from the plan decreases for a member who retired early and elected a level income form of pension payment.

Life Annuity

An annuity payable for life and ceasing immediately with no further benefits upon the death of the annuitant.

Life Annuity with Guaranteed Period

A life annuity that provides payments for life and guarantees that payments will be made for a specific period without regard to the death of the annuitant in such period.

LIFO

Last In, First Out (LIFO) - A term that reflects the fact that sales are made against the latest purchases, which tends to minimize profits and losses. Contrast with First In, First Out (FIFO).

LIRA

A Locked In Retirement Account (LIRA) is an RRSP where the funds are subject to pension legislation. A member must use these funds to purchase a life annuity or transfer them to a LIF or an LRIF by the end of the year that he/she reaches age 69.

Locked-in Benefit

A benefit that cannot be paid as a lump sum prior to the specified retirement date (except in case of death) and upon the member reaching retirement will be paid as a pension

Lump Sum

The capital accumulation in a plan, with or without interest that may or may not be paid to the plan members on resignation or retirement. Most plans do not allow full cash payment on retirement but permit a small portion to be paid as a lump sum.

Lump Sum Distribution (US)

The payment of a participant's entire vested plan benefit within one calendar year. The distribution must be made on account of termination of employment (except for self-employed individuals), death, disability (for self-employed individuals), or the attainment of age 59.5.

Manager

A template version security role. Able to view, but not modify security information.

Market Value

The price at which an asset can be bought or sold as set by the market (any market) at a particular time. For shares and futures contracts, the market value is usually based on the last sale price.

Marriage Breakdown

The legal term used to indicate that a marriage has discontinued and will most likely end in divorce. For the purpose of the division of family assets, the value of the member's accrued pension earned during the period of marriage, may be required. The portion of the member's benefit that may be granted to the non-member spouse is governed by the pension and family law regulations for the various provinces.

Maximum Age

Companies that maintain a defined benefit plan may be discouraged from hiring older employees because of the cost of funding benefits for them. Consequently, ERISA (Employee Retirement Income Security Act) permits a defined benefit plan to exclude an employee who is within five years of normal retirement age at the time when service begins. However, the plan must comply with coverage and anti-discrimination rules.

Maximum Pension

A Defined Benefit Plan will specify the maximum pension entitlement for any member, in compliance with income-tax regulations.

Member

Any employee or former employee of an employer who is or may become eligible to receive a benefit of any type from an employee benefit plan, or whose beneficiaries may be eligible to receive any such benefit. Called Participant in some plans.

Membership Service

Service rendered while a member of the pension plan. In CPAS Version 5, Membership Service is typically calculated from the plan entry date.

MFR

Management Fee Rebate

Minimum Pension

Some plans provide that a minimum amount of pension will be paid if the regular benefit formula produces less. This minimum is usually payable only if certain service requirements are met at retirement.

Money Market Fund

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).

Money Purchase Pension Plan

A Defined Contribution plan, the intent being to purchase an annuity at retirement with the proceeds to the credit of the member.

Mortality Table

A table of mortality rates according to the age and sex of the member or Spouse. The mortality rate expresses the number of deaths expected in a given year at various ages, out of the number of lives living at the beginning of that year. This is expressed as a ratio of deaths expected over lives existing at the beginning of the year.

MPPP

Money Purchase Pension Plan - A Defined Contribution plan, the intent being to purchase an annuity at retirement with the proceeds to the credit of the member.

MTV

Maximum Transfer Value

Multi-employer Plan

A pension plan covering the employees of several participating employers, usually in the same industry or covering employees in the same union or association.

Mutual Fund

See Investment Fund - open-end.

Non-contributory Pension Plan

A pension plan that does not require members to make contributions. The employer or plan sponsor bears the full cost of the benefits for the members.

Non-contributory Plan

A plan in which employees are NOT required to contribute, i.e. the entire cost is borne by the employer.

Non-focused cell

A selected cell in a non-active window.

Normal Form of Pension

The normal form of pension, as provided in the Plan Document, which is the form of pension provided under the terms of the Plan.

Normal Retirement Age

Specified in the plan document, the normal retirement age is the usual age (often 65) at which a member is eligible to retire with a full pension.

Normal Retirement Date

Date at which time members are normally entitled to a full pension.

NRA

Normal Retirement Age

NRD

Normal Retirement Date: Date at which time all members are entitled to a full pension. Also used as a formula key for the Normal Pension.

OAS

Old Age Security

OASDI

Old Age Security Disability Insurance

Observer

A CPAS template security role. Compared to Operators, Observers are subject to even more restrictions. They can view member information, but cannot run batches or process a calculation such as retirement, death, termination or marriage breakdown. They cannot add, delete or edit member data.

ODBC

Open Database Connectivity

ODD

Open Data Dictionary:  A file that defines the basic organization of the database, including all Table Structures and View Definitions within CPAS Version 5. Users can modify the Data Dictionary.

Offset Plan

A type of integrated defined benefit plan that reduces the plan benefit by a percentage of final average compensation.

Old Age Security Act (OAS)

The universal plan of old age benefits provided by Canada to residents of Canada of 20 years or more commencing at age 65

Operator

A CPAS template security role. Operators cannot change plan rules and assumptions. However, operators can perform member transactions.

Optimal Age

The age at which a member will receive the maximum commuted value.

Optional Forms of Pension

Refers to optional forms of pension payment available under the terms of a Pension Plan in addition to the normal form of pension payment. At retirement, the member may elect to receive either the normal form or the optional form of payment that best suits financial needs and personal circumstances.

Oracle 8i

A relational database management system developed by the Oracle Corporation, based in Redwood, California.

Ordinary Life Insurance

A form of whole life insurance usually issued in amounts of $1,000 or more with premiums payable on an annual, semi-annual, quarterly or monthly basis to the death of the insured or to the end of the mortality table employed, whichever occurs first and at which time (benefits) proceeds are due.

PA

Pension Adjustment

PA Offset

The PA offset is a factor used in the PA formula as required under the Income Tax Act. The offset amount was $1,000 for the 1990 to 1996 calendar years. Commencing with the 1997 taxation year, the offset was reduced to $600.

PAC

Pre-authorized Chequing

PAR

Pension Adjustment Reversal

Parallel load

A parallel direct path load provides multiple direct path load sessions to concurrently load data segments. Parallel direct path is more restrictive than direct path.

Participant

Any employee or former employee of an employer who is or may become eligible to receive a benefit of any type from an employee benefit plan, or whose beneficiaries may be eligible to receive any such benefit. Called Member in some plans.

Past Service

Service, usually continuous employment, of an employee prior to the effective date of the Pension Plan or prior to becoming a member of the Pension Plan.

Past Service Pension Adjustment (PSPA)

Past Service Pension Adjustment - The value of an increase in a member's pension benefits in recognition of past service on or before January 1, 1990 or due to an increase in the Plan's pension formula.

PBGC

Pension Benefit Guaranty Corporation

Pension

A series of periodic payments, usually for life, payable monthly or at other specified intervals.

Pension Adjustment (PA)

The value of a member's pension accumulated in a calendar year under a defined benefit or a defined contribution pension plan. This value is calculated based on a specific formula under Canada Customs and Revenue Agency Regulations. The value is applied to determine the contributions that a member can make to a personal Registered Retirement Savings Plan.

Pension Adjustment Reversal - DB (PAR)

Pension Adjustment Reversal - The amount of RRSP contribution room that can be restored for a member of a defined benefit pension plan who has terminated and has received the commuted value of the accrued pension. The amount of the PAR is the difference between the pension adjustments that were reported for the period of plan membership from January 1, 1990 to the date of termination and the commuted value of the pension for the same period of plan membership.

Pension Adjustment Reversal - DC (PAR)

In a DPSP or MPPP the PAR is the amount of the employer contributions that are unvested at termination of membership.

Pension Benefit Guaranty Corporation (PBGC)

A nonprofit corporation under the jurisdiction of the DOL that insures pension benefits.

Pension Enhancement

An improvement in the amount of pension entitlement usually granted due to a surplus accumulation in the Pension Fund.

Pension Formula

The formula stated in the Plan Document to determine the pension entitlement of a member - based on the normal form of pension payment.

Pension Plan

A funding arrangement implemented by an employer or group of employers to provide pension income to the members upon retirement. The amount of pension is either specified or can be calculated in accordance with a set formula based on various factors such as age, earnings, and service, etc. The cost of providing the pension income is either paid 100% by the employer or can be shared by the plan members.

Pensioner

A member of a pension plan who has retired and is in receipt of monthly retirement benefits from the plan.

PL/SQL

Procedural Language/Structured Query Language - the programming language used for databases.

Plan Document (or Plan Text)

The document which sets out the terms of the entire Pension Plan including: (i) Required contributions by both employee and employer (ii) Benefits payable, the amount, how calculated and when due (iii)Conditions of eligibility (iv) The rights of the member to appoint a beneficiary and elect optional forms (v) The procedure to be followed in case of wind-up of the Plan.

Plan Entry Date

The date the member joined a plan. Also called Entry Date.

Plan Funded %

The percentage of assets over liabilities.

Plan Participant

Any employee or former employee of an employer who is or may become eligible to receive a benefit of any type from an employee benefit plan, or whose beneficiaries may be eligible to receive any such benefit.

Plan Sponsor

A plan sponsor is the party that establishes and maintains a plan. It could be a single employer that maintains an employee benefit plan, an employee organization, or an association, committee, joint board of trustees or other similar group of representatives of the parties involved.

Plan Termination

Plan termination occurs when the plan ceases to exist and benefits are settled. Termination can be voluntary or involuntary.

Postponed Retirement

A member may elect to retire at an age greater than the Normal Retirement Age referenced under the terms of the Plan. In Canada, the member is required by law to commence receiving his monthly pension payments no later than the end of the calendar year in which he reaches 69.

Pre-retirement Death Benefits

This is a benefit payable from the Plan on the death of a member prior to attaining retirement age. In most cases, a lump sum payment is made to the spouse or to the designated beneficiary of the late member.

Product

A CPAS plan-type 'blueprint'. Products defined at the global level provide the infrastructure for the individual plans.

Program

An organized list of instructions that, when executed, causes the system to behave in a predetermined manner.

Prorated Earnings

The amount of earnings that constitutes only part of a calendar year or period of service. For example, if a salary record is for the whole year, but the earnings are required for only two months (say due to a Qdate split), the system will 'prorate' the data.

PSPA

Past Service Pension Adjustment

Purchase of Service

If permitted under the terms of the plan, a member can purchase additional pension service credits.

PWBA

Pension and Welfare Benefits Administration

Qdate

Qualification Date

QDRO

Qualified Domestic Relations Order

QJSA

Qualified Joint and Survivor Annuity

QPP

Quebec Pension Plan

Qualification Date

The date upon which benefits and conditions become effective. Also called Qdate or Change Date. See Qdate Split.

Qualification Date Split (Qdate)

A qualification date split, or Qdate, is a term used when tracking benefits accrued during different time periods.

Qx

Also known as q(X), this number represents the probability of death for males (at a particular age). The Qx generally increases with age, reaching very close to 1.0 at age 110.

Qy

Also known as q(y), this number represents the probability of death for females (at a particular age). The Qy generally increases with age, reaching very close to 1.0 at age 110.

RCA

Retirement Compensation Arrangements

RDBMS

Relational Database Management System - a type of database management system (DBMS) that stores data in the form of related tables.

Read-only Cell

A cell that cannot be modified by the user (often a calculated field).

Recalculation

A recalculation updates years of credited service, amount of accumulated pension, and contributions with interest.

Reconciliation

Reconciliation is a CPAS function that produces data for balancing or reporting purposes such as the completion of an Annual Information Return. It also provides plan sponsors with statistical information used for data management.

Registered Retirement Savings Plan

A voluntary individual retirement plan funded with an individual's own earnings. Contributions to an RRSP are tax-deductible and investment income is tax free until withdrawn.

Renewal Date

Continuance of coverage under a policy beyond its original term depends on the insurer's acceptance of a premium for a new policy by a specific date, called the Renewal Date.

Retirement Benefits

A regular pension payment, usually monthly, to a plan member who has retired from employment.

Return Value Statement

Defines what happens if a Condition Statement is true. Often begins with THEN.

Revalorization

A term used in Quebec to cover a requirement of the Quebec Supplemental Pension Plans Act with respect to the Postponed Retirement of a plan member. The Act stipulates that the benefit payable from a Postponed Retirement Date includes the actuarial equivalent of the benefit accrued to the Normal Retirement Date of the member.

Role

A user-group blueprint defined by a set of functional privileges.

ROR

Rate of Return

RRIF

Registered Retirement Income Fund  (Canada) - Funds registered with Revenue Canada that provide retirement income. Monies are directly transferred from RRSPs and can also include lump-sum payments from RPPs. Amounts withdrawn from RRIFs are taxable, and RRIFs must make minimum annual payments beginning in the year after the RRIF is established.

RRSP

Registered Retirement Savings Plan (Canada). A voluntary individual retirement plan funded with an individual's own earnings. Contributions to an RRSP are tax deductible and investment income is tax free until withdrawn.

Rules Generator

A CPAS feature that helps users write rules (conditions and/or values statements) and then generate the source code.

Salary

Salary in CPAS refers to a regular payment made by an employer to an employee for services rendered during employment.

Schema

A schema is the organization or structure for a database.

SCR

Stock Content Rebalance

Section 218 Agreements

Voluntary agreements with the Federal government to provide social security coverage to public employees. (US only)

Section 415

Section 415 of the Internal Revenue Code (the Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415 also requires that the Commissioner annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments. (US only)

Security tag

A marker used to identify a functional privilege. See Security tag switch.

Security tag switch

In the CPAS security system, certain specific functions have been labelled with a security tag. For each security role, permission to observe or perform each tagged function is granted or denied via a Yes/No security tag switch.

Select statement

The most commonly used statement in SQL, the SELECT statement retrieves data from the database and returns the data to the user.

Service

Service refers to employment taken into consideration under a pension plan. Years of employment before the inception of a plan that are taken into account to provide pension benefits constitute an employee's past service. Years of service after the inception date constitute a member's future or current service.

SIN

Social Insurance Number (Canadian)

Social Security

The government program that provides medical, disability, death, and retirement benefits to most workers. Both an employer and an employee contributes a percentage of the employee's salary to Social Security.

Spouse's Benefit

The benefit payable as a monthly pension to the spouse, commencing on the death of the member.

SPR

Small Pension Rule

SRP

Supplemental Retirement Pension

SSA

Social Security Administration

SSB

Social Security Benefit

SSN

Social Security Number (U.S.)

STTF

Short Term Trading Fee - A fee applied to ensure that funds are not impacted by members who trade frequently within the fund for short-term gains.

Table

Refers to data arranged in rows and columns in a database.

Table View

A command that allows the user to view data in tables (rows and columns).

Taxable Wage Base (TWB)

The maximum amount of annual compensation on which the employee and employer pay Social Security taxes.

Time Period Matrix

A linear array of time periods, produced by recording all status change dates, year-end dates, Qdates, earnings record dates, etc. on a time line. A time period matrix typically begins at DOH and ends at NRD.

Top Up

Pension in excess of the Canada Revenue Agency maximum amount.

Total Compensation

The total of all payments made to an employee, including salary, fringe benefits and the value of any benefits provided.

Transaction Date

The date on which the purchase or sale of a security takes place.

Transfer

Refers to the transfer of a member from one Pension Plan to another that has the same Plan Sponsor. Usually the transfer is due to a change in employment such as 'hourly' to 'salaried'.

Transfer Value

The amount available for and permitted to be transferred on behalf of a member who has terminated employment. Transfers may be permitted to be made to the terminated member's new employer's plan or to a personal (locked-in) RRSP arrangement. See Also - Commuted Value of Pension.

TWB

Taxable Wage Base (US)

Unisex Table of Mortality

A combined table of mortality rates that reflects the male and female mortality.

Unitized Fund

A fund that fluctuates directly with the value of the securities held in the fund.

USD

US dollars

Valuation

The process of valuing the assets and liabilities of a pension plan to ensure that there are sufficient funds in the plan to pay the accumulated pensions of the plan members. In Canada, a valuation must be performed at least once every three years, but may be required more frequently depending on the financial position of the plan.

Valuation Frequency

Indicates how often a fund's rates should be updated. Options include One fixed rate, Daily, Weekly, and Monthly.

Value statement

Value statements generally define what happens if a Condition statement is true and often begin with THEN.

VAT

Value Added Tax

Vested Benefits

The benefit that belongs to the member following completion of certain service and membership requirements. Once 'vested', the member cannot lose the benefit for any reason.

Vesting

A participant's interest in his/her account balance or his/her accumulated benefit. In pension terms, the right of an employee to all or part of the employer's contributions, whether in the form of cash or as a deferred pension.

View

A particular way of looking at a database. Usually a view arranges the records and makes only certain columns visible. Different views do not affect the physical organization of the database.

Voluntary Contributions

Contributions that are made by a plan member on a voluntary basis in addition to any required contributions. In plans that permit members to make voluntary contributions, employers are not required to match such contributions.

VPN

Virtual Private Network. A system that uses encryption and other security mechanisms to ensure that only authorized users can access the network and that the data cannot be intercepted.

WAN

Wide Area Network. Computers connected to a wide-area network can be connected via the telephone system, leased lines, or satellites.

YBE

Year's Basic Exemption - 10% of the YMPE rounded down to the next $100.

Year-end

The fiscal year-end of the pension plan as stated in the plan document.

YMPE

Year's Maximum Pensionable Earnings - The maximum amount of Pensionable Earnings - defined on an annual basis under the terms of the Canada Pension Plan.

YTD

Year to Date