pension vs. superannuation

English translation: comment

19:32 Oct 5, 2006

English language (monolingual) [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 (X)
Luxembourg

Selected answer: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: 10:19

Grading comment

Thanks!
4 KudoZ points were awarded for this answer

SUMMARY OF ALL EXPLANATIONS PROVIDED

4 +3

comment

Ken Cox

3 +2

synonyms in this context, I gather

Malik Beytek (X)

retirement pension or yearly bonus

Anna Maria Augustine (X)

Government or work pension vs privately funded pension

Fan Gao

Discussion entries: 3

Answers

3 mins confidence:

retirement pension or yearly bonus

Explanation:
I would have thought

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

Anna Maria Augustine (X)
France
Local time: 10:19
Native speaker of:

English,

French
PRO pts in category: 4

5 hrs confidence:

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: 18:19
Native speaker of: Chinese

4 hrs confidence:

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*.

Malik Beytek (X)
Local time: 11:19

21 hrs confidence:

peer agreement (net): +3

comment

Ken Cox
Local time: 10:19
Native speaker of:

English
PRO pts in category: 4

Grading comment

Thanks!

Notes to answerer

Asker: Many thanks for your thorough answer!

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