The Definitive Guide to HR Management Tools (Collection)

10. The Accounting and Financing of Retirement Plans

Aims and objectives of this chapter

• Establish a framework for employer-sponsored pension plans

• Further explain the difference between defined-benefit and defined-contribution pension plans

• Discuss the accounting for pension plans

• Review the accounting of defined contribution pension plans

• Explain accounting issues surrounding loans under defined contribution pension plans

• Discuss the accounting of defined benefit pension plans

• Explain the concept of income-replacement ratio

• Explain the reasons for the decrease in the use of defined benefit pension plans

• Explain the role of the actuary in the determination of defined benefit plan costs

• Discuss all the components involved ...