09 November 2009
Defined contribution scheme:The employer makes a contribution once a year. The accumulated balance of contributions and interest is used to pay the retirement benefits to the employee. The benefit available under this scheme has no relationship with the final salary or the no. of years of service put in by an employee. The benefit solely depends upon the annual contribution made by the employer. ACCOUNTING TREATMENT Defined contribution scheme:The employer makes a contribution once a year. The accumulated balance of contributions and interest is used to pay the retirement benefits to the employee. The benefit available under this scheme has no relationship with the final salary or the no. of years of service put in by an employee. The benefit solely depends upon the annual contribution made by the employer
16 November 2009
I was asking about the Defined Benefit Scheme and NOT Defined Contribution...! Also i need an example in this regard & not exactly theory if possible...
18 November 2009
Defined Benefit Plans are retirement benefits plan like gratuity,pension plan that defines an amount of benefits to be provided usually as a function of one or more factors such as age year of service or salary, for example , a gratuity payment obligation at the time employee leave the enterprises or retires is calculated on the basis of past service period and salary at the time of retirement.
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