OSPC - Frequently Asked Questions

Glossary of Pension Terms

Common-Law Partner: of a plan member or former plan member is defined as:

  • a person who, with the member or former member, has registered a common-law relationship under section 13.1 of The Vital Statistics Act or
  • a person who is not married to the plan member, or former member, but has lived with him or her in a conjugal relationship
    • for a period of at least three years, if either of them is married or
    • for a period of at least one year, if neither of them is married

A common-law relationship is defined as the relationship between two people who are common-law partners.

Defined Benefit Pension Plan: is a plan in which you as a member earn a pension based on service and earnings. These plans can be contributory (employees must make contributions) or non-contributory (the company makes contributions).

Defined Contribution or Money Purchase Pension Plan: is a plan in which you receive, at retirement, the pension that can be bought through your company, based on the value of the contributions you (if required by the plan) and your employer made, plus interest.

Joint Pension or Survivor Pension: pays a benefit to you for life and, after your death, to your spouse or partner for life.

Life Income Fund: is an investment that pays an adjustable amount of retirement income to the LIF owner, based on prescribed annuity factors. It must be at least the minimum amount stated in the federal Income Tax Act and the maximum amount stated in the provincial regulations under the Manitoba act.

Plan member/owner: is a former member of a pension plan who transferred funds to a LIRA or LIF

Registered Retirement Savings Plan (RRSP): is a personal retirement savings plan governed by the federal Income Tax Act.

Registered Retirement Income Fund (RRIF): is a personal retirement income fund that is governed by the federal Income Tax Act (Canada).

Spouse: is defined as the person who is married to the plan member or former member.

Variable Benefit Account: pays a LIF type payment from a defined contribution pension plan.

Year's Maximum Pensionable Earnings: is the term used to refer to employment earnings on which the Canada Pension Plan contributions and benefits are calculated.

Top of page