Financial Stability of funding a Pension

Essay specific features

 

Issue:

Business

 

Written by:

Josephine B

 

Date added:

January 12, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1422

 

Was viewed:

1011 times

 

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Essay content:

Most companies analyze their pension plans during the fourth quarter. These calculations are done annually, and significant changes may prompt companies to issue earnings guidance before reporting their year-end results in January. Companies may offer two types of pension plans: a defined contribution plan or a defined benefit plan...
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In a defined contribution (or profit-sharing) plan, the employer does not guarantee the plan's future performance ? the future value of benefits paid to employees is unknown. The employer makes contractual fixed payments (or a specified portion of net income, if it is a variable profit-sharing plan), but the employee assumes the risk for investment performance...
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