of $758,470. The company is also considering switching its post-employment benefits from a defined benefits plan to a defined contribution plan. In a defined contribution plan, the employer agrees to contribute to a pension trust a certain sum each period, based on a formula which, in this instance is 3% of payroll (Kieso, Weygandt, & Warfield, 2007). A defined benefits plan outlines the benefits that employees will receive when they retire. These benefits typically are a function of an employee’s
Words: 447 - Pages: 2
mandates. Discuss the implications of this preemption. The employee Retirement Income security Act of 1974 (ERISA) is a comprehensive federal statute which imposes minimum standards on employee benefit plans. In order to avoid conflicting state regulations, ERISA preempts state laws which relate to these plans. ERISA’s preemption, however, is not complete. Consistent with the federal policy embodied in the McCarran-Ferguson Act of leaving the regulation of insurance to the states, Congress saved from ERISA
Words: 2182 - Pages: 9
Pensions Finance Midterm Review OAFS 1. Summarise the three scenarios, identified by the World Economic Forum in its report on the twin challenges of longevity and healthcare. Provide your assessment of Canadian policy response towards increasing longevity and healthcare costs in light of these scenarios. Answer: Winners and the rest(High individual responsibility): - Highly global growth largely driven by emerging economies - Employers provide benefits but shift cost/risk
Words: 2120 - Pages: 9
IFA Chapter 20- Accounting for Pensions and Postretirement benefits A. Nature of Pension Plans A Pension plan is an arrangement whereby an employer provides benefits (payments) to retired employees for the services they performed in their working years. Pension accounting may be divided and separately treated as accounting for the employer and accounting for the pension fund. The company or employer is the organization sponsoring the pension plan. The fund or plan is the entity that receives
Words: 2796 - Pages: 12
net income by $2.4 million in 1984. * Restructure of Retirement Plan brought $39.9 million actuarial gain to the company. Also, rate of return assumption for determining pension expense has changed from 7.5% in 1982 and 8% in 1983 to 9% in 1984 and together with restructuring of pension plan reduced pension expense by approximately $4.0 million in 1984 and $2.0 million in 1983, and the actuarial present value of accumulated plan benefits by approximately $60.0 million in 1984. * Allowance
Words: 881 - Pages: 4
government and economic condition and economic outlook. * Major initiatives; Waller creek Tunnel Project, Zero Waste Initiative Redevelopment of Green Water Treatment Plan & Austin Climate Protection Plan. * Others; Financial Policies, Internal Controls, Budgetary Control, Cash Management, Risk Management and Pensions. * Certificate of Achievement for Excellence in Financial Reporting. * Acknowledgements 3. A) Yes, the city received an unqualified audit opinion. B) Yes, the
Words: 2267 - Pages: 10
the integrity of the financial system. The regulatory body may be handled by either a government or non-government organization”. The Jamaican financial landscape consists of various financial institutions. These include banks, security brokers, pension schemes and insurance companies. The main objectives of the financial regulator are usually: • Market confidence – to maintain confidence in the financial system • Financial stability – contributing to the protection and enhancement of stability
Words: 784 - Pages: 4
S Plants and Equipment. This change increase 1984 income by another $3.2 million. · In financial note 7 I saw a change in the Salaried Employees’ Retirement Plan. In 1984 the reconstructed the plan. It was mostly identical to the old plan except for the changes made in the minimum pension benefit. These changes helped reduce the pension expense by $4 million in 1984 and $20 million in 1983. 2. What do you think are the motives of Harnischfeger's management in making the changes to its financial
Words: 465 - Pages: 2
The Key Evidences and Reasons for the Rise in Financial Insecurity over the Last Generation in "The Great Risk Shift" 1. Introduction In "The Great Risk Shift", Jacob S. Hacker wrote that we have witnessed a massive transfer of financial risk from broad structures of insurance, including those sponsored by the corporate sector as well as by government, onto the fragile balance sheets of American families over the last generation (Jacob S. H., 2008). As Hacker revealed, the new financial Insecurity
Words: 891 - Pages: 4
Intermediate Accounting II Chapter 20 Accounting for Pensions Overview of Employer's Accounting for Pension Plans Defined contribution plan - employer agrees to make a defined contribution to a pension plan plan participants receive whatever benefits have accumulated each year, employer records an expense an a related liability for the contribution Defined benefit plan - employer agrees to provide a benefit at retirement that is defines or fixed by formula
Words: 1747 - Pages: 7
