Please explain why can a defined- Contribution pension plan never be underfunded?
Please explain why can a defined- Contribution pension plan never be underfunded?
Homework Answers
Defined Contribution plans are pension plans where the amount of pension after retirement is determined on the basis of contribution made by the employee and employer during the period of employment.
Unlike defined benefit plans, in these plans pension amount is not defined whilst employment so there is not any case of over funding or under funding.
Pension amount is totally dependent on the contributions by employee and employer, and investment earnings.
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Please explain why can a defined- Contribution pension plan
never be underfunded?
What type of pension plan would an employer want to offer, a defined contribution plan or...
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3-Explain at least two differences between a defined benefit and a defined contribution pension plan? 4-A corporation declares a dividend of s50,000 on December 1 payable to owners of record on Dec. 15, and then payable in cash on Jan 2. What transaction, if any, is recorded on Dec. 1? Show any journal entries needed on Dec. 1. 5-What other journal entries are needed for the transaction above? Show the entries. 6-Why do companies issue bonds? What other alternatives does...
Blount Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned...
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When does a government that participates in a defined contribution plan report a pension or OPEB...
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CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its...
CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year-end (in millions): Accumulated benefit obligation $142 Projected benefit obligation 205 Fair value of plan assets 175 There is no balance in prepaid/accrued pension costs. Required: a. Calculate the funded status of the plan (see SFAS No. 158 for a definition of funded status). Is the plan overfunded or underfunded? b. If the projected benefit obligation...
Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned...
Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period.
A government offers a defined contribution pension plan for police and firemen. The General Fund makes...
A government offers a defined contribution pension plan for police and firemen. The General Fund makes its annual contribution to the pension trust. How should the receipt of this money be reported by the Pension Trust Fund? Multiple Choice o As an Addition contributions for employed o As a bity Due to General Funds o o As Other Financing Source o Asefund Avenue
Fukushima Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned...
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"In a defined benefit plan, pension expense is equal to the firm s cash contribution." TRUE...
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Calculator Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees...
Calculator Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees eaned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 5% of employee salaries. Salanes were $800,000 during the period a. Provide the journal entry for the vacation pay b. Provide the journal entry for the pension benefit.
3-Explain at least two differences between a defined benefit and a defined contribution pension plan? 4-A corporation declares a dividend of s50,000 on December 1 payable to owners of record on Dec. 15, and then payable in cash on Jan 2. What transaction, if any, is recorded on Dec. 1? Show any journal entries needed on Dec. 1. 5-What other journal entries are needed for the transaction above? Show the entries. 6-Why do companies issue bonds? What other alternatives does...
CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year-end (in millions): Accumulated benefit obligation $142 Projected benefit obligation 205 Fair value of plan assets 175 There is no balance in prepaid/accrued pension costs. Required: a. Calculate the funded status of the plan (see SFAS No. 158 for a definition of funded status). Is the plan overfunded or underfunded? b. If the projected benefit obligation...
Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period.
A government offers a defined contribution pension plan for police and firemen. The General Fund makes its annual contribution to the pension trust. How should the receipt of this money be reported by the Pension Trust Fund? Multiple Choice o As an Addition contributions for employed o As a bity Due to General Funds o o As Other Financing Source o Asefund Avenue
Calculator Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees eaned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 5% of employee salaries. Salanes were $800,000 during the period a. Provide the journal entry for the vacation pay b. Provide the journal entry for the pension benefit.
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