Retirement Compensation Funding



About Us | The RcF Advantage 





Supplemental and Pension Shortfall Funding:  The RcF Advantage


Retirement Compensation Funding Inc (RcF) is Canada's only full service 3rd party service provider for Retirement Compensation Arrangements (RCAs) used to secure and fund Supplemental Executive Retirement Plans (SERPs) for Public Corporations and Individual Pension Shortfall Funding Plans for owners of Private Corporations. RcF provides Investment Professionals, Financial Advisors and Pension Consultants with all the requirements to establish an RCA in one integrated package at an affordable cost to their clients.


Unique to the Industry, RcF's PENSIONWrap's closely follow government guidelines for calculation and funding of RCAs.   RcF not only provides both entitlement and funding figures, but includes RCA ledgers  making it easier to track RCA performance. Most other RCA providers only provide an Actuarial Certificate with no RCA Ledgers.  If the funding vehicle for the RCA is an insurance contact, RcF provides an RCA ledger integrated with the Insurer’s insurance illustration. Insurance companies do not have the required software to do this. Only an RcF ledger clearly shows if the entitlement funding follows CRA guidelines and, allows for the preparation of a proper insured funding quotation.
 RcF does not provide investment advice but, does provide the Advisors with the required tools to make long term decisions.  If the RCA is "Portfolio Managed", RcF's in-force tracking software shows ongoing performance and provides guidance as to realization of gains and the effect on the RCA's Refundable Tax Account (RTA) and payouts.  If "Insurance Funded", RcF's PENSIONPlus works with most insurance companies' illustration systems providing the Advisor the flexibility of a wide range of tax-sheltered investment options through PENSIONPlus  or PENSIONPlus GIFFor RCAs funded with Conventional Investments, RcF's software provides guidance relative to different taxation of Mutual or Segregated Funds. 
 Corporate Trustee 
 RcF use BMO Trust Company under a special fee arrangement that is the lowest in Canada. This is important given the Federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Inexperienced individual trustees, in non-arms length situations, not only expose themselves to penalties but potentially allow the status of the RCA to be challenged. 
 Field Support 
 RcF is insurance licensed and can therefore provide full consultation and support for insurance funded products. Non-licensed RCA providers cannot. This is important when insurance products are used for funding. Other RCA providers and insurers only provide part of the requirements. A financial advisor not fully versed in RCA's might not be able to arrange all of the requirements or, if done, not know if they properly work together.  
 Compliance Guidelines 
 RcF is the only RCA provider to post on its web-site details of RCA uses that CRA finds objectionable. RcF does not support any RCA arrangement that CRA has indicated they might challenge. Some RCA providers not only recommend Split Dollar/Shared Ownership and loan back arrangements but fail to disclose the CRA warnings. Others involved in the RCA feel that since they are only providing one component (the insurance contract for example) they have no concern or liability for the whole. 

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