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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.
Debentures are also fixed income securities with a specified interest rate. These securities have charge over the assets of the issuer. In contrast to
Safety Stock Level The simple Economic Order Quantity (EOQ) model used in inventory management assumes that the reorder point will be at a level equal to (Lead time in number
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john has two options from which to choose one: (a)Either to pay shs24m for the motor vehicle now . OR (b)To pay for the car in four equal regular installments of shs7m ea
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Federal Reserve System The central banking institution in the United States responsible for determining United States monetary strategy, including the setting of interest rates
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