BU397 Lecture Notes - Lecture 9: Deferral, Life Insurance, The Employer
Document Summary
3 types of benefit plans: pension and other post retirement benefits. Provide health care or life insurance benefits after an employee"s retirement: post-employment plans. Benefits being provided after employment but before retirement: compensated absences. Includes payments made while an employee is absent from work. Employee future benefit plans can be: defined contribution plans (dc) Specifies how the entity"s contributions or payments into. Rather than identifying what benefits will be the plan are determined received by the employee or the method of determining those benefits. Once the entity pays the contributions into the fund, it has no further obligation. Even if the fund does not have enough assets to pay for the employee benefits. Amounts paid are usually to specific individuals. Amounts are defined and can be a fixed sum or based on salary. The amounts contributed are usually turned over to a third party (trustee) who acts on behalf of the beneficiaries.
