Note 10. Retirement Compensation Arrangement

The Retirement Compensation Arrangement (RCA) is a seamless arrangement and is funded by the overall investment portfolio of the Plan, but assets are segregated under a separate account from the assets of the Registered Pension Plan (RPP).  It allows members to accrue pension benefits and to remit contributions that exceed those amounts permitted under the Income Tax Act (Canada) for an RPP.

The RCA is partially funded from employer contributions and from investment earnings on those contributions.  The allocation of contributions to the RCA and RPP is based on a rate determined periodically by management in a manner that is expected to be sufficient to pay the benefits as they fall due.  The pension benefits are payable under the terms and conditions of the Plan.