2.Pension benefits are generally well-defined and level in amount; healthcare benefits are generally uncapped and variable. 3.Pension benefits are payable monthly; healthcare benefits are paid as needed and used. 4. Pension plan variables are reasonably predictable, whereas healthcare plan variables are difficult to predict. Pension The similarities and differences that are listed above are why I believe a company would be more likely to select a pension plan. First and foremost is that pension and retirement benefits are fixed in the amount by contract terms. For example Healthcare plans the terms are unknown and the cost of the benefit is dependent upon healthcare cost at the time. Secondly is Pension plans provide the employees with some sort of security for their retirement years and most employers feel as though it boost and enhances productivity and reduces turnover and allows employers to compete in the labor market. Wahlen, Jones, Pagach. 2017. Intermediate accounting: reporting and analysis. 2nd ed.
Received from: DOI: MindTap Cengage Pension and other postretirement benefits: accounting similarities and differences. (2018). The CPA Journal Online. Retrieved from
- Fall '15
- Accounting, pension plans, postretirement benefits