ACC327_EX3CH20_StudyGuide

ACC327_EX3CH20_StudyGuide - C hapter 20 Study Guide P...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 20 Study Guide – Pensions and Other Postretirement Benefits -A pension plan will either be a _____________ plan or a _____________ plan. -___________________ is one sponsored by a governmental unit (i.e. the state of Mississippi sponsors a pension for state employees). -___________________ is one sponsored by a business enterprise (i.e. General Motors). These plans are governed by federal law as mandated in the ____________________________ Act (aka ____________). It is the statutory law governing the operations of pension funds. -A ________________________ is a plan whereby both the employer and the employees make contributions to the pension fund; contributions do not have to be in _________ amounts. -A ________________________ is a plan whereby only the employer contributes to the pension fund. -A ________________________ is a plan whereby the employer specifies the contributions to the plan, but there is no specification of the amount of benefits to be paid to the retirees. The contributions are usually tied to some base and applied at a specified rate (i.e. 5% of an employee’s salary). For these types of plans, __________________ is recorded each period for the amount of the contribution to the fund. The employer has no ________________ because the retiree’s benefits are not defined. -- Example . Defined Contribution Plan. Total salaries of covered employees are $5,000,000 and employer’s contributions are specified at 5% of covered salaries. What is the entry? -A ________________________ is a plan whereby the amount of the employer’s periodic contribution to the fund is not specified, but the benefits to be paid to retirees are specifically stated. Contributions are made to the fund by the ____________, but the amount of the periodic contributions are not specified so long as they at least meet the minimum requirements set by ____________. -A ________________________ is a plan whereby the employer makes funding contributions to an _____________________________ (i.e. a large bank or insurance company), which is responsible for _______________ and _______________ the fund assets and also makes retirement payments to the _____________________. -A ________________________ is a plan whereby the employer retains control of the pension fund. Contributions are still made to the fund except that they are not made to an ____________________. The employer company is responsible for investing and managing the fund assets. The ______________ also makes retirement payments to retirees from the fund assets. -In this course, we will focus on _______________, _________________, ______________, ________________ which will be referred to as “pension plan”.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
-A company’s pension cost is determined largely by ________________ who use present value techniques to compute the PV of the future benefits expected to be paid to the retirees and the funding requirements. -The _____________ ____ is the present value of the future retirement benefits to be paid to the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/10/2011 for the course ACC 327 taught by Professor Sign during the Spring '11 term at S. Alabama.

Page1 / 13

ACC327_EX3CH20_StudyGuide - C hapter 20 Study Guide P...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online