A Defined Contribution Superannuation Plan Is One in Which

question 30

Multiple Choice

A defined contribution superannuation plan is one in which:

• A) The contributions to the plan only are 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.
• E) None of the given answers.

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and over, as well as for some younger individuals with disabilities.

Government Expenditures

Refers to the financial spending by a government, including the funding of public services, infrastructure, and social programs.

Receipts

Documents acknowledging that a transaction has taken place and that a payment has been made or received.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, illustrating how much tax will be paid on an additional dollar of income.