MISSISSAUGA, ON, Feb. 28, 2014 /CNW/ - Knowledge First Financial Inc.
today announces customers of the Family Group Education Savings Plan
(the "Plan") have approved five (5) proposed changes that will make it
easier for customers and students to receive benefits from the Plan.
The changes were approved at a special meeting of customers held in at
the company's headquarters in Mississauga. The following Plan changes
will occur after the close of business on or about March 1, 2014 or
such later date as may be determined by the Knowledge First Foundation,
subject to regulatory approvals:
Qualifying for Education Assistance Payments (EAPs)
Customers approved changes to the qualification rules that need to be
met by a beneficiary ("student") in order to receive EAPs from the Plan
income pool to make it easier to qualify for an EAP.
This change will be effective for plans that have matured or will mature
as of July 31, 2014 or later and have a year of eligibility of 2015 or
EAP Annual Request Deadline
Customers approved extending the EAP request deadline from August 1st to November 1st.
This change will provide students whose plans have matured, and are
therefore eligible for an EAP, until November 1st each year to give us their instructions about that year's payment.
Fewer Discontinued Plans
Customers approved changes to the rules under which the Plan Manager can
discontinue a plan.
Rather than discontinuing a plan at the maturity date if two or more
contributions have been missed and not made up under the plan's
contribution schedule, the Manager will automatically reduce the number
of active units in the plan. The student will then be eligible for EAPs
based on the revised units in their plan, rather than having their plan
Remove Automatic Return of Principal
Customers approved the removal of the "automatic" return of principal
deposits two years following maturity date from the Plan, if government
grants are in the RESP.
This is to avoid having to return the government grants that have been
collected for the student to the appropriate provincial or federal
government before the student has had an opportunity to receive them
with their EAPs.
Change to Administration Fee
Customers approved an administration fee increase of 0.1% to 0.6% per
The Knowledge First Foundation, a not-for-profit Canadian corporation,
sponsors and promotes the Family Group Education Savings Plan, the
Family Single Student Education Savings Plan (the "Family Plans") and
the Flex First Plan.
Knowledge Fist Financial Inc., a wholly owned subsidiary of Knowledge
First Foundation, acts as the Investment Fund Manager, administator and
distributor of the education savings plans offered by Knowledge First
Foundation Knowledge First Financial has more than $3.3 billion in
assets under management (as at April 30, 2013) and has paid out $2.8
billion to customers and students.
This press release was approved by Paul Renaud, LL.B., Acc. Dir.,
Corporate Secretary & General Counsel, an Executive Officer of the
Manager of the Investment Fund as defined by National Instrument
SOURCE: Knowledge First Financial Inc.
For further information:
For more information about Knowledge First Financial please visit www.knowledgefirstfinancial.ca or call 1 800 363-7377.