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
challenges that the finance manager face in fulfilling the managerial function

What role does depreciation play in calculating incremental cash flows? Depreciation expense is a tax deductible expense and hence influences cash flow by its effect on taxes.Dep

Why does money have time value? Positive interest rates point out that money has time value.  While one person lets another borrow money, the first person needs compensation in e

Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The three-month interest rate is 8.0% per year in the U.S. and 5.8% per year in t

Joe and Sam each invested $20,000 in the stock market. Joe's investment increased in value by 5% per year for 10 years. Sam's investment decreased in value by 5% for 5 years and th

Discounted Cash Flow A technique used to present a forecasted stream of future cash flows in conditions of its present value, or its value in today's dollars. Discounted cash

Determine the Working Capital Decision Investment in current assets is a major activitythat a finance manager is engaged in a daily basis. How much inventory tokeep, how much

Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal

The asset that acts as a collateral for an asset-backed security can either be an amortizing or a non-amortizing asset. In an amortizing asset,

iau.la/im/fin500.pdf need help with 100 questions with multiple answers quiz!