Case 14 - DESHHUNMOSSCONDELL STUDENT#000006336 ACCOUNTING...

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THE COLLEGE OF THE BAHAMAS DE’SHHUN MOSS CONDELL STUDENT # 000 00 6336 ACCOUNTING  THEORY  315 CASE 14 -1      PENSION BENEFITS 11/22/11
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Case 14-1 A I Workplace pension plans come in two broad varieties: Defined benefit pensions and defined contribution pensions. Defined contribution plans workers contribute to the plan and direct their investments to get the best return possible. In defined contribution pension plan in the level of contributions is fixed at a certain level, while benefits vary depending on the return from the investments. In some cases, such as 401(k), 403(b), and 457 plans, employees make voluntary contributions into a tax-deferred account, which may or may not be matched by employers. The level of contribution may be selected by the employee within a range set by the employer, such as between 2% and 10% of annual salary. In other cases, contributions are made by an employer into a profit-sharing account based on each employee’s salary level, years of service, age, and other factors. Defined contribution pension plans, unlike defined benefit pension plans, give the employee options of where to invest the account, usually among stock, bond and money market accounts. Defined contribution plans have become increasingly popular in recent years because they limit a company’s pension outlay and shift the liability for investment performance from the company’s pension plan to employees. In addition, plan sponsors
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This note was uploaded on 02/02/2012 for the course ACCOUNTING Acc632 taught by Professor Marry during the Spring '10 term at College of the Bahamas.

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Case 14 - DESHHUNMOSSCONDELL STUDENT#000006336 ACCOUNTING...

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