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 thereafter.
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 discontinued.
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 year.
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 81-106.
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.