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Submitted by sylvia on October 22, 2007
- Category: Business
- Words: 472
- Pages: 2
- Views: 117
- Popularity Rank: 2085
Post-Retirement Benefits
Post-Retirement Benefits
Defined Benefit Plan (DBP) and Defined Contribution Plan (DCP) are two general types of pension plans, designed for post-retirement. DBP defines the benefits that the employee will receive at the time of retirement. There is a formula used that provides for the benefits to be a function of the employee’s years of service and the employee’s compensation level when they near retirement. It is necessary to determine what the contribution should be today to meet the pension benefit commitments that will arise at retirement funding method employed, should provide enough money at retirement to meet the benefits defined by the plan.
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