Employee benefits

Accountancy

in this question can u explain the reason behind the answer? why we should not assume it as defined contribution plan?

Niveta Rajkumar

CA Inter

★ 6K+

02-Sep-24 22:04

383

Answers (3)

In that question, they clearly mentioned that Company is not only responsible for premium what they paid, but they agreed for pension calculation formula(which includes variables).

Mahantesh Biradar

CA Final

★ 92K+

02-Sep-24 22:22

I mean question states that company makes periodic contribution in the form of premium, "but its not dependent on that premium" . Means they agreed for further responsibility .i.e., over and above the fixed % or amount of contribution.

Mahantesh Biradar

CA Final

★ 92K+

02-Sep-24 22:56

because the liability is on the employer.

CA Suraj Lakhotia

Admin

09-Sep-24 15:52