Asked by Dayna McCormick on Jul 09, 2024
Verified
Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on?
A) provincial law
B) a pay-as-you-go philosophy
C) a reward philosophy
D) an earnings philosophy
Pay-as-you-go Philosophy
A financial strategy where expenses are paid for as they occur, rather than using credit or accumulating debt.
Reward Philosophy
An organization’s formal approach to managing employee compensation, benefits, and recognition in alignment with overall business strategy.
Earnings Philosophy
The underlying beliefs and principles that guide how an organization compensates its employees, reflecting values concerning fairness, performance, and the market.
- Master the understanding of the variety of pension and benefit schemes and their particular features.
Verified Answer
AG
Allison GrubeJul 15, 2024
Final Answer :
D
Explanation :
This view is based on an earnings philosophy, where the pension is considered part of the compensation that an employee earns over their working life, rather than a gift or reward from the employer.
Learning Objectives
- Master the understanding of the variety of pension and benefit schemes and their particular features.