Which of the following is a characteristic of a defined contribution post-employment benefit scheme?
Which of the following is a characteristic of a defined contribution post-employment benefit scheme?
A . The amount of the post-employment benefits paid to former employees depends on how well the scheme’s investments have performed.
B . The employer would make additional contributions into the scheme if the actuary predicted a shortfall in the funds available to pay post-employment benefits.
C . The amount of the post-employment benefits paid to former employees is determined at the date of their retirement using a predefined formula.
D . The employer may take a contributions holiday and stop paying contributions for a period, if the scheme’s assets appear to be more than are required to meet the scheme’s obligations.
Answer: A
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