Glossary

Accumulated Income Payment or “AIP"
The income earned on your contributions and government grants can be withdrawn from your plan if your beneficiary is not attending post-secondary studies. As a Canadian resident, you can request an AIP once you have held your RESP for at least 10 years and your student is 21 years of age.  An AIP must be issued before the termination date of your plan which is indicated on your annual statement of account.  Government grants will be sent back to the government when you request an AIP.

Additional CESG
“Additional CESG" stands for the additional Canada Education Savings Grant available to qualifying families. The amount of Additional CESG is up to 20% annually on the first $500 of contributions to a Registered Education Savings Plan.

Additional QESI
“Additional QESI" stands for the additional Quebec Education Savings Incentive available to qualifying families. The amount of Additional QESI is up to 10% annually on the first $500 of contributions to a Registered Education Savings Plan.

Basic Canada Education Savings Grant (CESG)
The Canada Education Savings Grant from the Government of Canada matches  20% annually on the first $2,500 contributed to a  Registered Education Savings Plan. Lifetime maximum per child is $7,200.

Basic Quebec Education Savings Incentive (QESI)
The Quebec Education Savings Incentive is a refundable tax credit that provides  10% annually on to the first $2,500 of contributions to a Registered Education Savings Plan. Lifetime maximum per child is $3,600.

Beneficiary
The person you name to receive Educational Assistance Payments under the Plan.

British Columbia Training and Education Savings Grant (BCTESG)
British Columbia Training and Education Savings Grant (BCTESG)
The BCTESG is a one-time grant of $1,200 from the Government of British Columbia is available from the child’s 6th birthday until the day before their 9th birthday. Residency requirements apply.

CESG
The Canada Education Savings Grant (CESG) from the Government of Canada matches 20% annually on the first $2,500 contributed to a Registered Education Savings Plan.  Lifetime maximum is $7,200 per child.

CLB
“The Canada Learning Bond (CLB) is the grant from the Government of Canada with the cumulative lifetime maximum of $2,000 per eligible beneficiary.

Contract
“Contract" is the Education Assistance Agreement you enter into with us when you open your education savings plan.

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

CRA
“CRA" stands for the Canada Revenue Agency.

Designated Educational Institution
“Designated Educational Institution" means an institution which complies with Section 118.6(1)(a)(I) of the Income Tax Act (Canada).

Distributor
“Distributor" means Knowledge First Financial Inc., the corporation which offers enrollment in the Plans to subscribers.

Educational Assistance Payment (EAP)
“Educational Assistance Payment" or “EAP" is a payment made to your beneficiary for eligible post-secondary studies. An EAP consists of earnings on your contributions and government grants. EAPs are taxable to the beneficiary and a tax receipt will be provided for the year EAP is received.

Earnings
Any money earned on your contributions and government grants, such as interest and capital gains.

ESDC
“ESDC" means the Employment and Social Development Canada.

Foundation
“Foundation" means the Knowledge First Foundation.

Good Standing
“Good Standing" means, in respect of a plan, that all contributions have been remitted and all applicable fees have been collected.

Government Grant
Any financial grant, bond or incentive offered by the federal or provincial government to assist with saving for post-secondary education in an RESP.

Grant contribution room (or ‘grant room’)
The amount of government grant you are eligible for under a federal or provincial government grant program.

Income
“Income" has the same meaning as Earnings.

IRC
“IRC" stands for the Independent Review Committee which is a committee whose role is to oversee all decisions involving an actual or perceived conflict between the interests of the Foundation or Distributor, on the one hand, and the interests of the Plans, on the other.

Maturity Date
“Maturity Date" means the date on which the plan matures. In general, it is in the year your beneficiary is expected to enroll in their first year of post-secondary education.

Management Fee
Is the amount paid by the Plan for ongoing administration, custodial and investment counsel expenses.

Plan
“Plan" means each individual Plan of each particular subscriber.

Plans
“Plans" means the Knowledge First Plans that provide funding for a beneficiary’s post-secondary education.

QESI
The Quebec Education Savings Incentive (QESI) is a refundable tax credit that provides  10% annually on to the first $2,500 of contributions to a Registered Education Savings Plan. Lifetime maximum per child is $3,600.

Recognized Institution
“Recognized Institution" means:
(i) an educational institution in Canada described in section (a) of the definition “Designated Educational Institution" in subsection 118.6(1) of the Income Tax Act (Canada); or
(ii) an educational institution outside Canada that is a university, college or other educational institution that provides courses at a post-secondary school level in which a Beneficiary is enrolled in a course of not less than 13 consecutive weeks leading to a degree.

RESP
“RESP" stands for Registered Education Savings Plan which is an education savings plan registered for the purposes of the Income Tax Act (Canada).

RRSP
“RRSP" stands for Registered Retirement Savings Plan which is a retirement savings plan registered for the purposes of the Income Tax Act (Canada).

Sales Charge
The “sales Charge"  is a one-time fee that is deducted from your initial contributions for administrative costs.

Spouse
“Spouse" includes a common-law partner as defined under the Income Tax Act (Canada).

Subscriber
“Subscriber" means the individual(s) who enter(s) into a contract with the Knowledge First Foundation to make contributions to a Plan.

Unit
Your contributions correspond to units in the family individual plan or Heritage plans (no longer offered). 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. The terms of the contract you sign determine the final value of a unit.

Variable Rate Securities
“Variable Rate Securities" means index linked or other variable rate debt securities issued or guaranteed by the federal or provincial governments.

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