Classic Plan RESP Wind-Up Approved
May 3, 2019
Mississauga, ON (May 3, 2019) – Knowledge First Financial Inc. today announces the approval from Classic Plan customers to initiate the process to wind-up the Classic Plan and transfer customer assets to the Family Single Student Education Savings Plan (Single Student Plan), an individual Plan that provides customers with full flexibility in withdrawing funds and realizing the full benefits of their RESP.
Knowledge First Foundation, a Canadian not-for-profit corporation, is the sponsor of the Classic Plan and other education savings plans. Sales of the Classic Plan started in 1965 and continued until August 2000, after which further sales ceased and Knowledge First Financial, as the investment fund manager, continued administration of the Plan.
The Classic Plan is a group scholarship plan that rewards customers who contribute to their agreement continuously from enrolment until the maturity date and students who complete a standard four-year post-secondary undergraduate degree. The benefits of winding up the Classic Plan and transferring customer assets to the Single Student Plan include:
- Eliminating the risk of students not receiving all three Education Assistance Payments (EAPs),
- Removing restrictions in withdrawing funds, and
- Enabling both customers and students to access all income accumulated within their RESP.
“The Classic Plan was developed to encourage customers to make ongoing contributions and students to pursue a traditional, four-year undergraduate degree,” said George Hopkinson, President and CEO, Knowledge First Financial. “The fact that the proposed changes met with resounding approval from Classic Plan customers is proof; the concept of rewarding customers and students at the expense of those who are not able to fulfill these requirements is not aligned with the realities of today’s post-secondary education landscape.”
To carry out the proposed plan changes, a vote ‘FOR’ by a majority of the votes cast by Classic Plan customers was required. Votes were cast at the Special Meeting held at offices of Knowledge First Financial on May 2, 2019 with 93.67% votes cast in favour of the proposed changes.
About Knowledge First Financial
Canadian families have relied on education savings plans offered by Knowledge First Financial for more than 50 years. Since 1965, payments from the plans have reached $6.6 billion and the Knowledge First Foundation has further enhanced Education Assistance Payments to students by over $50 million. Today, the company manages $6.0 billion in assets for more than 500,000 RESPs.
Knowledge First Financial Inc. is a wholly-owned subsidiary of Knowledge First Foundation and is the investment fund manager, administrator and distributor of Registered Education Savings Plans. Knowledge First Foundation is a not-for-profit Canadian corporation. The Foundation reinvests excess revenues in initiatives that support student success.
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