Assume you are an employee, age 25, and you are given a choice between a defined benefit plan and a defined contribution plan. Which one do you prefer? How did you make your evaluation?
There art primarily two types of employers sponsored retirement plans: defined benefit pension plans and defined contribution plans. In a defined benefit plan, there is a specified retirement amount guaranteed by the employer. The employees to not have control over the funds that they will receive at the time of retirement. A defined contribution plan on the other hand is funded primarily by the employee. Under such plans, both employer and employee contribute to collect retirement funds for the employee. As a 25 year old, I will opt for a defined contribution plan. This is because I can make sufficient contributions to ensure that sufficient amount is accumulated for my retirement. In the young age, I can contribute a higher amount due to greater income and ensure that my retirement needs are taken care of .
Assume you are an employee, age 25, and you are given a choice between a defined...
What is the difference between a defined benefit and a defined contribution retirement plan? Multiple Choice Defined benefit plans allow employees to set aside money on a tax-exempt basis. Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement. Defined contribution plans allow employees to contribute a set amount toward their retirement plan while employed. Defined benefit plans limit employee contributions while employed.
Traveltime Tours has a defined benefit pension plan. As a new employee, you are interested in the future well-being of the plan. To help you visualize your assessment, you use your Excel skills to graph the key numbers. The line graph below plots the balances of the company's Projected Benefit Obligation and its Plan Assets over the most recent six years. DEFINED BENEFIT PENSION PLAN Pension Plan Assets - Projected Benefit Obligation $35,000 $30,000 $25,000 $20,000 BALANCES $15,000 $10,000 $5,000...
Explain some differences with the types of health insurance plans from the perspective of an employee. What is a defined benefit pension plan, a defined contribution plan and 401k accounts. Do you have a preference for one of these? Why? What is a competency-based compensation program?*
A) Distinguish between defined benefit plans and defined contribution plans? B) In your opinion, which plan is considered better for individuals , particularly in tough economic times, and why? (Explain your answer).
Discuss advantages and disadvantages of both retirement plans: defined benefit and a defined contribution. If you were allowed to only select one plan for your retirement among the above two retirement plans, which would it be and why?
1)Which of the following is an important difference between qualified and nonqualified retirement plans? a. Qualified plans provide benefits for retirees who were high-performing employees, while nonqualified plans provide benefits for retirees whose performance did not meet minimum job expectations. b. Employer contributions are deductible when paid to a qualified plan, but deductible when paid to the employee under a nonqualified plan. c. Employer contributions to nonqualified plans are subject to dollar limits, but contributions to qualified plans are unlimited. d. Earnings of...
"I only get one shot at this?" you wonder aloud. Mrs. Montgomery, human resources manager at Covington State University, has just explained that newly hired assistant professors must choose between two retirement plan options. "Yes, I'm afraid so," she concedes. "But you do have a week to decide." Mrs. Montgomery's explanation was that your two alternatives are: (1) the state's defined benefit plan and (2) a defined contribution plan under which the university will contribute each year an amount equal...
THIS IS FOR AN EMPLOYEE BENEFITS AND RETIREMENT CLASS. QUALIFIED PLANS WOULD BE SOMETHING LIKE A 401K, IRA, ETC. Next week we are going to discuss establishing, administering and terminating qualified plans. Assume you are 50 years old. You have started your own business and you have 5 employees. You have decided to add a qualified plan to your employee benefit package. Tell me the following (you can assume whatever you want with regards to your answers): 1. What plan...
HELP! You have just been hired by your new employer and must choose between two retirement plan options... You have just been hired by your new employer and must choose between two retirement plan options: (1) the state’s defined benefit plan and (2) a defined contribution plan under which the employer will contribute each year an amount equal to 8 % of your salary. The defined benefit plan will provide annual retirement benefits determined by the following formula: 1.5% x...
What is your opinion regarding the choice between disclosure or secrecy in employee monitoring? If you were the employee, how would disclosure and secrecy influence your decision to continue working there?