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pension vs. superannuation

English translation: comment

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19:32 Oct 5, 2006
English to English translations [PRO]
Bus/Financial - Investment / Securities
English term or phrase: pension vs. superannuation
"The first $1,000 of pension income from certain sources is deductible from one's income for tax purposes. Applies to income from a ***pension or superannuation fund*** at any age, and where income is obtained from "private" sources, RRSP from age 65"

I'd be grateful if you could explain what the difference between "pension" and "superannuation" is.

Thanks,
Mihai
Mihai Badea
Romania
English translation:comment
Explanation:
IMO (as a Canadian) 'pension fund' and 'superannuation fund' are equivalent for the purposes of this text -- they are two names for pensions plans that are organised and administered by a company, government organisation, union, or the like. A Registered Retirement Savings Plan (RRSP), by contrast, is a special retirement savings scheme introduced by the Canadian government to encourage people not covered by pension plans to accumulate money for retirement and deal with the problem that contributions to pension plans are often not portable, which means that employees that change jobs (move to a different company) risk losing their accumulated pension benefits. RRSP contributions are tax-free, but the income from an RRSP is taxed when it is used. An RRSP is a sort of 'private' (i.e. personal) pension plan, and there are a variety of instututions (typically banks, credit unions and mutual funds) that are authorised to offer such plans.
That's all background. The text simply states that the first $1000 of pension income from a pension or superannuity plan can be deducted from tax income regardless of the age of the taxpayer, but pension income from an RRSP can only be deduced if the taxpayer is 65 or older.

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Note added at 21 hrs (2006-10-06 17:03:00 GMT)
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Corrections: 'deducted from taxable income' and 'can only be deducted'
Selected response from:

Ken Cox
Local time: 21:46
Grading comment
Thanks!
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3commentKen Cox
3 +2synonyms in this context, I gatherxxxMalik Beytek
4Government or work pension vs privately funded pension
Fan Gao
4retirement pension or yearly bonusAnna Maria Augustine at proZ.com


Discussion entries: 3





  

Answers


3 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
retirement pension or yearly bonus


Explanation:
I would have thought

www.thefreedictionary.com superannuation
www.thefreedictionary.com pension

Anna Maria Augustine at proZ.com
France
Local time: 21:46
Native speaker of: Native in EnglishEnglish, Native in FrenchFrench
PRO pts in category: 4
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5 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
Government or work pension vs privately funded pension


Explanation:
My understanding is that a regular pension is paid by the government in the form of the "old age pension" to help people past retirement age or if you have worked for a company for a long period of time then they will also provide you with a pension after you retire.

A superannuation fund is a seperate pension plan where employers can make contributions on behalf of their employees or employees can independantly make their own contributions to give themselves extra income when it comes to retirement. These funds usually have tax benefits.

Hope this helps.
Mark

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Note added at 6 hrs (2006-10-06 01:42:33 GMT)
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As your context mentions "where income is obtained from "private" sources" I tend to think that in this particular case they are referring to private pension plans and superannuation funds where the individual is independantly investing their own money for their retirement so they pretty much amount to the same thing.

Fan Gao
Australia
Local time: 03:46
Native speaker of: Chinese

Peer comments on this answer (and responses from the answerer)
neutral  xxxMalik Beytek: Not necessarily. some countries / states in countries have Public Service Superannuation Plans or Civil Service Superannuation Plans. Your choice of the word "separate", however, can be helpful to asker. I shall revise my answer accordingly.
1 hr
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4 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +2
synonyms in this context, I gather


Explanation:
I mean I think a "pension fund" and a "superannuation fund" are different names for the same thing.

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Note added at 6 hrs (2006-10-06 02:18:08 GMT)
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This note is motivated by the answer from Chinese Concept, in that it makes reference to *separate funds*.

Indeed I think multiple pension funds are involved here, some public and some private perhaps, and the expression *pension or superannuation fund* means, I think, *any pension fund whether it is called a pension fund or a superannuation fund*.



xxxMalik Beytek
Local time: 22:46

Peer comments on this answer (and responses from the answerer)
agree  Seema Ugrankar
51 mins
  -> Thank you, I now revise and extend, above in "add a note" section.

agree  Lucica Abil
1 day21 hrs
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21 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
comment


Explanation:
IMO (as a Canadian) 'pension fund' and 'superannuation fund' are equivalent for the purposes of this text -- they are two names for pensions plans that are organised and administered by a company, government organisation, union, or the like. A Registered Retirement Savings Plan (RRSP), by contrast, is a special retirement savings scheme introduced by the Canadian government to encourage people not covered by pension plans to accumulate money for retirement and deal with the problem that contributions to pension plans are often not portable, which means that employees that change jobs (move to a different company) risk losing their accumulated pension benefits. RRSP contributions are tax-free, but the income from an RRSP is taxed when it is used. An RRSP is a sort of 'private' (i.e. personal) pension plan, and there are a variety of instututions (typically banks, credit unions and mutual funds) that are authorised to offer such plans.
That's all background. The text simply states that the first $1000 of pension income from a pension or superannuity plan can be deducted from tax income regardless of the age of the taxpayer, but pension income from an RRSP can only be deduced if the taxpayer is 65 or older.

--------------------------------------------------
Note added at 21 hrs (2006-10-06 17:03:00 GMT)
--------------------------------------------------

Corrections: 'deducted from taxable income' and 'can only be deducted'

Ken Cox
Local time: 21:46
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Thanks!
Notes to answerer
Asker: Many thanks for your thorough answer!


Peer comments on this answer (and responses from the answerer)
agree  xxxMalik Beytek: Proz.com does have a point in advising askers to wait for about 24 hours.
2 hrs

agree  Lucica Abil
1 day5 hrs

agree  xxxAlfa Trans
1 day16 hrs
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