If employee-investors are unsophisticated and unlikely to be materially influenced by educational efforts, the best way to improve the welfare of employee-investors is pension design. Please discuss and provide references and examples.
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If employee-investors are unsophisticated and unlikely to be materially influenced by educational efforts, the best way to improve the welfare of employee-investors is pension design. Please discuss and provide references and examples.
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- Your company has decided to offer company-sponsored, outsourced retirement planning to employees as a voluntary benefit. Which data set did the employer most likely use to make this decision? A. Ethical B. Compliance C. Demographic D. EconomicIt is a type of retirement plan where the benefit to be received by the employee is dependent on the contributions made to the plan and on the investment performance of the plan. The risk that the benefits to be received may be insufficient is retained by the employee. a. Defined contribution plan b. Defined benefit plan c. none of the above d. a or bWhy do you think fringe benefits are important enough to influence an employee's choice of employer and what are some specific examples of benefits that might appeal to prospective employees? Post your response and research (at least two scholarly resources) in a descriptive one-page memo or report in Microsoft Word. Your response should explain your findings in relation to why fringe benefits are important to employees.
- Which of the following does not describe a defined contribution plan? The employer bears the risk of investment in a defined contribution plan. The contribution is certain but the benefit is uncertain. If the plan does poorly, the employee will share in the loss by paying more contributions. The accumulated fund on the date of an employee’s retirement determines the benefit.As a manager, would you use financial incentives to compensate your employees? If so, what would be the keys to using them effectively? If not, then how would you compensate your employees?what financial arguments could you use to justify your proposed recommendations to segregate FLTs and the worker?
- Which of the following is not an approach to financing employee benefits? Select one: a. Noncontributory b. Employee-financed c. Contributory d. VoluntaryAll qualified plans must have fiduciaries who must act in the best interests of the plan participants and their beneficiaries. Which of the following is a breach of fiduciary responsibilities? Select one: a. Making a bad investment based on professional advice and conducting appropriate due diligence. b. Making sure the plan investments are diversified. c. Making decisions in the interest of the plan sponsor. d. Paying for educational seminars that are reasonable in cost and substantiate attendance in a high percentage of presentation sessions.You are a small employer, and are considering adding a retirement plan for you and your employees, which plan(s) would you consider as candidates for this goal? SEPs, SIMPLE Plans, Keogh Plans? Why?
- 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, 4Which of the following is not a characteristic of a defined-contribution pension plan? The employer's contribution each period is fixed. If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset. An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.Defined contribution plans are gaining in popularity because: a) They remove the burden of payment from the employer b) They qualify retirees for special Social Security payments c) The benefits are tax free d) They routinely produce higher payouts to employees
