Glossary

Accumulated income payment (AIP): the earnings on your contributions and/or government grants that you may get from your plan if your beneficiary does not pursue post-secondary education and you meet certain conditions set by the federal government or by the Plan.

AIP: see accumulated income payment.

Application date: the date you opened your plan with us, which is the date you sign your application.

Attrition: under the group plan, a reduction in the number of beneficiaries who qualify for EAPs in a beneficiary group. See also pre-maturity attrition and post-maturity attrition.

Beneficiary: the person you name to receive EAPs under the plan.

Beneficiary group: beneficiaries in the group plan who have the same year of eligibility and are associated with the same group income pool. They are typically going to start their post-secondary studies in the same year.

Contract: the agreement (the “Education Assistance Agreement”) you enter into with us when you open your education savings plan.

Contribution: the amount you contribute to your plan after any insurance premiums have been deducted from your deposit. The sales charge and other fees are deducted from the contributions in your plan.

Discretionary payment: a payment, other than a fee refund or Loyalty Bonus, that the beneficiary may receive in addition to his or her EAPs as determined by the Foundation in its discretion.

Discretionary payment account: any account that holds money used to fund discretionary payments to beneficiaries (see “Income Account” in the group plan Education Assistance Agreement).

EAP: see educational assistance payment.

EAP account: for the group plan, an account that holds the income earned on contributions made by subscribers after their plan has matured or cancelled. There is a separate EAP account for each beneficiary group. An EAP account includes the income earned on contributions of subscribers whose plans have matured, or were cancelled before they matured either by the subscriber or by us. The money in this account is distributed to the remaining beneficiaries in the beneficiary group as part of their EAPs. This account is also referred to as the “beneficiary group income pool” (see also “FEAP Account” in the group plan Education Assistance Agreement).

Earnings: any money earned on your (i) contributions and (ii) government grants, such as interest and capital gains. For group plans, it does not include any income earned in the discretionary payment account, such as interest earned on income transferred to the group EAP account after the maturity date.

Educational assistance payment (EAP): an EAP is a payment made to your beneficiary for eligible studies. An EAP consists of your earnings, your government grants and earnings on government grants. For the group plan, an EAP consists of your government grants, earnings on your government grants, your beneficiary’s share of the EAP account for their beneficiary group, and any money issued from the Foundation’s discretionary payment account to the beneficiary. EAPs do not include the discretionary scholarship payment made from the Foundation’s available excess revenues or fee refunds.

Eligible studies: a post-secondary school year and educational program that meets that specific Plan’s requirements for a beneficiary to receive EAPs.

Government Grant: any financial grant, bond or incentive offered by the federal government, (such as the Canada Education Savings Grant, or the Canada Learning Bond), or by a provincial government, to assist with saving for post-secondary education in an RESP.
Grant contribution room: the amount of government grant you are eligible for under a federal or provincial government grant program.

Grant contribution room: Grant contribution room (also known as “grant room”): the amount of government grant you are eligible for under a federal or provincial government grant program.

Income: has the same meaning as earnings.

Maturity date: for the group plan and family individual plan, July 31 in your plan’s year of maturity; the date your plan matures. This date is usually in the year your beneficiary is expected to enrol in their first year of post-secondary education. There is no maturity date set for a Flex First Plan.

Plan(s): means the Flex First Plan (“Flex First”), the Family Group Education Savings Plan (“group plan”) and/or the Family Single Student Education Savings Plan (“family individual plan”) each a scholarship plan offered by the Foundation that provides funding for a beneficiary’s post-secondary education.

Post-maturity attrition: under the group plan, the number of beneficiaries who do not qualify for EAPs from their beneficiary group income pool after their maturity date. See also Attrition.

Pre-maturity attrition: under the group plan, the number of beneficiaries who will not qualify for EAPs because their plans have been cancelled, and their earnings were transferred to the beneficiary group income pool before their plan reached its maturity date. See also Attrition.

Subscriber: the person or persons who enter into a contract with the Foundation to make contributions to a Plan.

Unit: for the group and family individual plans. Your contributions correspond to units in your plan. The number of units you have in your plan depends on how much, how often, and how many years you contribute to it. The more units you have in your plan, the higher your sales charge will be. In the group plan, a unit represents your beneficiary’s proportionate share of your beneficiary group income pool. Therefore in the group plan, the more units you have, the higher your beneficiary’s EAPs will be. The terms of the contract you sign determine the final value of a unit.

Year of eligibility: the year in which a beneficiary is first eligible to receive EAPs under the group plan. It is typically the year the beneficiary will enter his or her second school year of eligible studies. The year of eligibility is scheduled to be one year after the maturity date, but this can be changed if needed.

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