Asked Jan 26, 2020

Determine the meaning of the following terms.

a.    Contributory plan.

b.    Vested benefits.

c.    Retroactive benefits.

d.    Years-of-service method.


Expert Answer

Step 1

a. Contributory plan:

A plan through which the employees or beneficiary contribute to the pension fund created, maintained and recorded by the pension fund agencies. This contribution includes employer contribution too.

b. Vested benefit:

A fut...

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