Page 284 - F1 Integrated Workbook STUDENT 2018
P. 284
Chapter 17
Defined contribution plans
The pension payable on retirement depends on the contributions paid into the plan
by the employee and employer.
The employers’ contribution is usually a fixed percentage of the
employees’ salary. The employer has no further obligation after this
amount is paid.
Therefore the annual cost to the employer is reasonably predictable.
Defined contribution plans present few accounting problems.
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