CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 98
Topic #: 1

Which of the following is a characteristic of a defined contribution post-employment benefit scheme?

AThe amount of the post-employment benefits paid to former employees depends on how well the scheme's investments have performed.

BThe employer would make additional contributions into the scheme if the actuary predicted a shortfall in the funds available to pay post-employment benefits.

CThe amount of the post-employment benefits paid to former employees is determined at the date of their retirement using a predefined formula.

DThe employer may take a contributions holiday and stop paying contributions for a period, if the scheme's assets appear to be more than are required to meet the scheme's obligations.

Show Suggested Answer

Suggested Answer: A

by Vi at Sep 17, 2024, 05:53 AM

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Bok

2 months ago

C seems to be the most straightforward and clear-cut answer. Gotta love a predefined formula, am I right?

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Salome

2 months ago

Haha, a contributions holiday? That's like taking a vacation from your retirement savings. I'll have to go with A on this one.

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Daniel

1 months ago

User 3: Haha, a contributions holiday? That's like taking a vacation from your retirement savings. I'll have to go with A on this one.

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Cordelia

1 months ago

User 2: B) The employer would make additional contributions into the scheme if the actuary predicted a shortfall in the funds available to pay post-employment benefits.

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