Contributions to a defined contribution plan are invested on the employee's behalf.TrueFalse

Question 14Under defined contribution plan:Answer :The employer’s contribution is unknown.   The benefits payable to the retiring employees is unknown.   The amount of benefits to be received by the retiring employees depends on the amounts originally contributed plus income from investments accumulated in the fund.    The benefits of gains or risks of losses invested under the fund are borne by the employees.

The report of defined contribution plan shall contain: I. Statement of net asset available for Benefit II. A description of funding entity  *1 pointI onlyII onlyboth I & IIeither I & II

Which of the following is true of defined contribution plan?Question 4Answera.It provides an explicit benefit which is easily communicated.b.It is more favourable to long-service employees.c.It does not require managing of surplus or deficit in pension fund.d.It makes the employer accountable for the risks associated with changes in inflation and interest rates.e.It does not make employer costs known.

Under this plan, both the employer and employee share in the retirement benefit cost.*1 pointContributory planNon-contributory planFunded planUnfunded plan

Which of the following employee benefit plans is defined by the following statement: “post-employment benefit plans under which an entity pays fixed contributions into a separate entity and will have no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods”?