Are employees more likely to favor defined contribution plans over defined benefit plans? What about employers? Explain your answer. 4. Explain why mobile employees might prefer cash balance plans over defined benefit plans.

Are employees more likely to favor defined contribution plans over defined benefit plans? What about employers? Explain your answer. 4. Explain why mobile employees might prefer cash balance plans over defined benefit plans.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 7Q

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Question

Ch.4. Employer-sponsored Retirement Plans.

2. Are employees more likely to favor defined contribution plans over defined benefit plans? What about employers? Explain your answer.

4. Explain why mobile employees might prefer cash balance plans over defined benefit plans.

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Describe three criteria of the 13 minimum standards on which plan status is determined to qualify retirement plans for preferential tax treatment. Are employees more likely to favor defined contribution plans over defined benefit plans? What about employers? Explain your answer. Explain why mobile employees might prefer cash balance plans over defined benefit plans.
Which of the following statements are disadvantages for the employer-sponsor of a cash balance pension plan? 1)A certain level of plan benefit is guaranteed by the PBGC. 2)The employer bears the investment risk in the plan. 3)Cash balance pension plans are less expensive for the employer than a traditional defined benefit pension plan. 4)Retirement benefits may be inadequate for older plan entrants Answer list below a) 2, 4 b) 1, 2 c) 1, 3 d) 3, 4
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How do the Defined contribution pension plans becoming increasingly popular vehicles for employers?
Defined benefit pension plans a stipulate contributions will be made to the employer’s retirement fund b Bestows the risk of low portfolio returns to the employee c Bestows the risk of low portfolio returns to the employer d Will benefit employers if retirees live longer
The Employee Retirement Income Security Act (ERISA) was established to provide: Question 16 options: a) funding for retirement plans. b) mandatory retirement plans for self-employed individuals. c) protection to employees participating in private employer retirement plans. d) individual trust funds for employees retiring from jobs in the federal government. e) the ability to retain the same retirement insurance when employees change employers.
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A positive-balance employer has: a. an employee development program that promotes work-life balance and leadership skills. b. a reserve account whereby the benefits paid out are less than the taxes paid in. c. a reserve account whereby the benefits paid by the state = the taxes paid in. d. a reserve account whereby the benefits paid out exceed the taxes paid in.