A Defined Contribution Superannuation Plan Is One in Which

question 53

Multiple Choice

A defined contribution superannuation plan is one in which:

• A) the contributions to the plan are only paid out to members on retirement.
• B) the benefits paid out by the plan are based on the average salary of an employee over a period of years as a reflection of the employee's contribution to the employer.
• C) the contributions are defined by the amount needed to pay out benefits to the members at a specified level on retirement.
• D) the benefits paid out by the plan depend on the contributions made to the plan and the earnings of that plan.

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Definitions:

Unit Elastic

A situation in economics where a change in the price of a product leads to a proportional change in the quantity demanded or supplied, resulting in an elasticity of exactly one.

Tax

A compulsory financial charge or levy imposed by a government on individuals or businesses to fund public expenditures.

State Government

The government of a specific state within a country, which operates under that country's constitution to manage local laws and regulations.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes.