I need help with these 3 questions please m12 Describe the differences between a
ID: 325918 • Letter: I
Question
I need help with these 3 questions please
m12
Describe the differences between a defined benefit plan and a defined contribution pension plan After reviewing all of the various benefits in this module, list the top three that you consider essential. Explain why. What benefits would you require if you were to accept a job offer? Why are these benefits so important to you? Do not cite mandatory benefits that the employer must pay legally 1. 2. 3. In your opinion, what would a company include in its benefits package that might appeal to young, healthy workers? What benefits would the company include that would be attractive to older employees? How might the company structure their benefit plan so that employees can take advantage of the benefits they care most about?Explanation / Answer
2. The top 3 benefit plans which I would prefer are
This is because young employees tend to enjoy in early stage of their life hence they don’t care for long term benefits whereas old employees care about their future a lot as they are nearing their retirement.
Companies should ensure that benefits don’t result in increased tax to employee, in other sense companies should structure their benefits in such a way that employees pay minimum tax. Facilities like cab, cafeteria should not be mentioned in CTC but should be provided. Companies should also leave employees to choose their benefit as individuals have different view on different benefits.
Defined benefit plan Defined contribution plan Provides pension during life time of employee (Until his death) Provides one time lump sum amount Typically employee and employer contribute fixed percentage of money to pension fund Typically employee and employer contribute fixed money to account set up in employee name. Defined benefit plan are costly for companies Defined contribution plan are relatively cheaper for companies professional decide where pension fund needs to be invested Individual decide where fund needs to be invested