Asked by Arren Scruggs on Jul 23, 2024
Verified
Raj Vickram is receiving a pension of $3,500 per month. This figure was based on a predetermined formula. What type of plan is this?
A) a contributory plan
B) a non-contributory plan
C) a defined-contribution plan
D) a defined-benefit plan
Defined-Benefit Plan
A pension plan in which the amount an employee is to receive on retirement is specifically set forth
Predetermined Formula
A specific method or calculation established in advance to determine outcomes, such as allocations or benefits.
- Gain insight into the executive and strategic factors in developing and applying staff welfare programs.
Verified Answer
FM
Faisal MangalJul 25, 2024
Final Answer :
D
Explanation :
A defined-benefit plan provides a predetermined monthly pension amount, which is what Raj Vickram is receiving. This type of plan specifies the benefit amount an employee will receive upon retirement, often based on salary and years of service.
Learning Objectives
- Gain insight into the executive and strategic factors in developing and applying staff welfare programs.