Insurance - Study Mode

[#341] Public Pensions are funded in the following manner:
Correct Answer

(D) Pay as you go

Explanation

Solution: Public Pensions are funded in Pay as you go. A pay-as-you-go pension plan is a specific type of pension scheme where the benefits are directly tied to the contributions or taxes paid by individual participants. This is in contrast to fully funded pension plans where the pension trust fund is not actively paid into by its future beneficiaries.

[#342] Who provides Occupational pensions?
Correct Answer

(B) Employers

Explanation

Solution: An occupational pension is one that is provided by an employer. They are also known as company or employers' pension plans. Occupational pension schemes provide a regular income after retirement.

[#343] Which is a type of Occupational pension?
Correct Answer

(C) Both A & B

Explanation

Solution: Defined Benefit type and Defined contribution type is a type of Occupational pension. A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Defined contribution (DC) schemes are occupational pension schemes where your own contributions and your employer's contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement.

[#344] Under Defined Benefit type, the benefit payable is independent of
Correct Answer

(C) Both A & B

Explanation

Solution: Under Defined Benefit type, the benefit payable is independent of Contributions and Investment earnings.

[#345] Quantum of pension under Defined Benefit type would depend on –
Correct Answer

(D) All of the above

Explanation

Solution: Quantum of pension under Defined Benefit type would depend on Accrual rate, Salary and Pensionable service.