Contrast a benefit and a defined contribution pension plan, Financial Management

Assignment Help:

Compare and contrast a defined benefit and a defined contribution pension plan.

In defined benefit plan retirement remuneration are determined by a formula that typically considers the worker's salary, age and years of service.  The firm and/or the employee contribute the amounts necessary to reach the goal.  In a defined contribution plan, the contributions to be made by the employer and/or employee are spelled out, but retirement payback depend on the total accumulation in the individual's account at the retirement date.

 


Related Discussions:- Contrast a benefit and a defined contribution pension plan

Approaches to valuing asset-backed securities, There are two approach...

There are two approaches to value Asset-Backed Securities. They are: Zero-Volatility Spread (Z-spread) Approach. Option-Adjusted Spread

Explain the structure of main financial statement, Citilink has just comple...

Citilink has just completed its 2010/11 management accounts. The directors are going to review the financial statements in the next board meeting. You have to prepare a FINANCIAL

What are the drawbacks of benchmarking, What are the Drawbacks of benchmark...

What are the Drawbacks of benchmarking -  Benchmarking systems and programmes can be costly and time consuming -  Diversity and complexity of information can 'overload 'mana

What is the floating rate bonds, What is the Floating Rate Bonds (FRBs) ...

What is the Floating Rate Bonds (FRBs) Bonds whose interest payments fluctuate with changes in general level of interest rates and are tied to a basic rate (termed as the refer

Collection of amounts due - account receivable management, Preferably all c...

Preferably all customers will settle within the agreed terms of trade. If this doesn't happen a company needs to have in place agreed procedures for dealing with overdue accounts.

Investment opportunities in capital budgeting process, Briefly examine the ...

Briefly examine the significance of identification of investment opportunities in capital budgeting process

Explain conversion and competitive effects of exchange rate, Define the con...

Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer:  The competitive effect: Exchange rate modifications may in

Principle of opportunity cost, Suppose you have recently been contracted as...

Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr

Duration, Now that we have an understanding about price volatility ...

Now that we have an understanding about price volatility characteristics of a bond, let us turn to the duration/convexity approach, which is an alternative

Debentures, A 16% debenture of R5 000 is redeemable at a premium of 10% aft...

A 16% debenture of R5 000 is redeemable at a premium of 10% after 5 years. The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd