Contribution plans-pension fund plans, Financial Management

Defined Contribution Plans

In defined contribution plans, the contributions made by or on behalf of the employee are accumulated and paid on retirement along with such return as the fund may generate on the investments made. In defined contribution plans, the risk is usually borne entirely by the participating employee as his benefits are directly related to the accumulated contribution to his credit. If the pension or provident fund loses money in investments or earns lower than benchmark return, the employee bears the loss or opportunity loss.

In defined contribution plans, the pension amount depends on the amount accumulated to the credit of the employee. Defined contribution plans can be funded by contributions of either the employee or the employer or both.


Posted Date: 9/11/2012 1:34:16 AM | Location : United States

Related Discussions:- Contribution plans-pension fund plans, Assignment Help, Ask Question on Contribution plans-pension fund plans, Get Answer, Expert's Help, Contribution plans-pension fund plans Discussions

Write discussion on Contribution plans-pension fund plans
Your posts are moderated
Related Questions
The risk free rate is 10 percent and the expected return on the market portfolio is 14 percent. A firm considers a project that is expected to have a beta of 1.3, whereas the beta

Q. Explain Due Date and Due Diligence? Due Date -Every governing agency and its forms scheduled reporting and most significantly payments have a required due date. It's this

Debenture Debenture is a document holding an acknowledgment of indebtedness on the part of organizations, usually secured by a charge on the company's assets.

#questThe managing directors of three profitable listed companies discussed their companies'' dividend policies at a business lunch. Company A; has deliberately paid no dividends

Question 1: a) Describe fully why and how government intervenes in the foreign exchange market. b) "Changes in the equilibrium exchange rate between a pair of currencies rel

What are the different types of cash flow to the bondholder of coupon bonds? Coupon bonds deliver two different kinds of cash flow to the bondholder are as follows: a. Face

91-Day T-Bills Starting from July, 1965, 91-day T-bills were issued at a discount rate ranging from 2.5-4.6 percent per annum. Till July, 1974, the discount rate was 4.6 percen

a)   Year 2 Year 1   Stock turnover (350/500) * 365 = 255.5 days (250/450) * 365 = 202.7 days

What is the Modigliani and Miller theory of dividends?  Explain. The Modigliani-Miller theory of dividends says so as dividend theory is irrelevant.  They claim so as to it is