FAR2C18 B Flashcards
(34 cards)
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 1 Only
1) What happens once the defined contribution is paid?
2) What is a defined benefit plan?
3) What is the relationship between benefits and contributions in a defined benefit plan?
4) What must an entity do to meet future retirement benefits in a defined benefit plan?
5) What is a “contribution holiday” in the context of a defined benefit plan?
6) What happens if the defined benefit plan performs poorly?
7) What is a multiemployer plan?
8) What is the Social Security System in the context of postemployment benefit plans?
9) What does R.A. 7641 represent in relation to postemployment benefit plans?
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 1 Only
1) What — once the defined contribution is —?
2) What is a defined — plan?
3) What is the relationship between — and —- in a defined — plan?
4) What must an entity — to — future retirement — in a defined — plan?
5) What is a “— —” in the context of a defined — plan?
6) What — if the defined benefit plan performs —?
7) What is a — plan?
8) What is the — — —- in the context of postemployment benefit plans?
9) What does — — represent in relation to postemployment benefit plans?
1) What happens once the defined contribution is paid?
2) What is a defined benefit plan?
3) What is the relationship between benefits and contributions in a defined benefit plan?
4) What must an entity do to meet future retirement benefits in a defined benefit plan?
5) What is a “contribution holiday” in the context of a defined benefit plan?
6) What happens if the defined benefit plan performs poorly?
7) What is a multiemployer plan?
8) What is the Social Security System in the context of postemployment benefit plans?
9) What does R.A. 7641 represent in relation to postemployment benefit plans?
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 2 Only
1) What is R.A. 7641?
2) What are the six (6) Key Features of R.A. 7641?
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 3 Only
1) What are insured benefits in the context of postemployment benefit plans?
2) Under what conditions is a postemployment benefit plan accounted for as a defined benefit plan?
3) What happens when an insurance policy is in the name of a specified plan participant and the entity has no obligation?
4) How is the payment of fixed premiums under an insurance contract treated?
5) How should the entity treat insurance payments if they are considered a settlement of the employee benefit obligation?
6) How is accounting for a defined contribution plan characterized?
7) What is the nature of actuarial gain or loss in a defined contribution plan?
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 2 Only
1) What is — —?
2) What are the six (6) — — of R.A. 7641?
1) What is R.A. 7641?
2) What are the six (6) Key Features of R.A. 7641?
State all content information.
What happens once the defined contribution is paid?
9
2
7
Part 3 Only
1) What are — — in the context of postemployment benefit plans?
2) Under what conditions is a postemployment benefit plan — for as a defined — plan?
3) What happens when an insurance policy is in the name of a — plan — and the entity has no obligation?
4) How is the payment of — —- under an — contract —?
5) How should the entity treat — —- if they are considered a — of the employee — —?
6) How is accounting for a defined contribution plan —?
7) What is the — of actuarial gain or loss in a defined — plan?
1) What are insured benefits in the context of postemployment benefit plans?
2) Under what conditions is a postemployment benefit plan accounted for as a defined benefit plan?
3) What happens when an insurance policy is in the name of a specified plan participant and the entity has no obligation?
4) How is the payment of fixed premiums under an insurance contract treated?
5) How should the entity treat insurance payments if they are considered a settlement of the employee benefit obligation?
6) How is accounting for a defined contribution plan characterized?
7) What is the nature of actuarial gain or loss in a defined contribution plan?
State all content information.
What happens once the defined contribution is paid?
9
2
7
1) What happens once the defined contribution is paid?
2) What is a defined benefit plan?
3) What is the relationship between benefits and contributions in a defined benefit plan?
4) What must an entity do to meet future retirement benefits in a defined benefit plan?
5) What is a “contribution holiday” in the context of a defined benefit plan?
6) What happens if the defined benefit plan performs poorly?
7) What is a multiemployer plan?
8) What is the Social Security System in the context of postemployment benefit plans?
9) What does R.A. 7641 represent in relation to postemployment benefit plans?
1) What is R.A. 7641?
2) What are the six (6) Key Features of R.A. 7641?
1) What are insured benefits in the context of postemployment benefit plans?
2) Under what conditions is a postemployment benefit plan accounted for as a defined benefit plan?
3) What happens when an insurance policy is in the name of a specified plan participant and the entity has no obligation?
4) How is the payment of fixed premiums under an insurance contract treated?
5) How should the entity treat insurance payments if they are considered as settlement of the employee benefit obligation?
6) How is accounting for a defined contribution plan characterized?
7) What is the nature of actuarial gain or loss in a defined contribution plan?
What happens once the defined contribution is paid?
Once the defined contribution is paid, the employer has no further obligation under the plan.
What is a defined benefit plan?
It is a postemployment plan that is not a defined contribution plan, where an entity’s obligation is to provide agreed benefits to employees.
Under this plan, an entity’s obligation is to provide the agreed benefits to employees.
Employees are guaranteed a specific or definite amount of benefit, typically related to their salary and years of service.
What is a defined benefit plan?
It is a — plan that is — a defined — plan, where an entity’s obligation is to provide — — to employees.
Under this plan, an entity’s obligation is to — the — —- to employees.
Employees are — a — or — amount of —-, typically related to their — and — of —.
It is a postemployment plan that is not a defined contribution plan, where an entity’s obligation is to provide agreed benefits to employees.
Under this plan, an entity’s obligation is to provide the agreed benefits to employees.
Employees are guaranteed a specific or definite amount of benefit, typically related to their salary and years of service.
It is a postemployment plan that is not a defined contribution plan, where an entity’s obligation is to provide agreed benefits to employees.
Under this plan, an entity’s obligation is to provide the agreed benefits to employees.
Employees are guaranteed a specific or definite amount of benefit, typically related to their salary and years of service.
Defined benefit plan
What is the relationship between benefits and contributions in a defined benefit plan?
The benefit is definite, but the contributions required to fund it are indefinite.
What must an entity do to meet future retirement benefits in a defined benefit plan?
The entity must make contributions so that the total contributions plus earnings are sufficiently large to cover future retirement benefits, assuming the investment risk.
What is a “contribution holiday” in the context of a defined benefit plan?
If the plan is exceptionally good, the entity may take this , meaning it can temporarily stop making contributions.
If the plan is exceptionally good, the entity may take this , meaning it can temporarily stop making contributions.
Contribution holiday
What happens if the defined benefit plan performs poorly?
If the plan performs poorly, the entity must make additional contributions to cover any expected shortfall and satisfy the promised future benefits.
What is a multiemployer plan?
This plan is either a defined contribution or defined benefit plan that pools the assets contributed by various entities not under common control to provide benefits to employees of more than one entity.
This plan is either a defined contribution or defined benefit plan that pools the assets contributed by various entities not under common control to provide benefits to employees of more than one entity.
Multiemployer plan
What is the Social Security System in the context of postemployment benefit plans?
The Social Security System is a defined contribution plan where the entity’s obligation is limited to specified contributions to the plan as a percentage of salary.
What does R.A. 7641 represent in relation to postemployment benefit plans?
R.A. 7641 is a defined benefit plan because the entity’s obligation is to provide a specific level of benefit for every year of service.
What is R.A. 7641?
It also known as the “Retirement Pay Law,” is a Philippine law that mandates the provision of retirement benefits to certain employees in the private sector.
It also known as the “Retirement Pay Law,” is a Philippine law that mandates the provision of retirement benefits to certain employees in the private sector.
R.A. 7641
What are the six (6) Key Features of R.A. 7641?
- Coverage: The law applies to all private sector employees who have rendered at least five (5) years of service, except those who are already covered by other retirement plans or agreements that provide retirement benefits.
- Retirement Age: Employees can retire upon reaching the age of 60, but the law also allows for retirement at earlier ages under specific conditions.
- Retirement Benefits: The law stipulates that employees are entitled to a retirement pay that is equivalent to 1/2 month’s salary for every year of service, where the “month’s salary” includes:
The basic salary
All allowances
Other benefits provided by the employer - Formula for Retirement Pay: The retirement pay is calculated as: Retirement Pay=(1/2×Monthly Salary)×Years of Service
- Additional Provisions:
o Employees who retire before reaching the mandatory retirement age are entitled to the same retirement benefits.
o The law also outlines the employer’s obligations regarding the payment of retirement benefits. - Employer’s Obligation: Employers are required to pay the retirement benefits upon the employee’s retirement.
Purpose and Impact
The purpose of R.A. 7641 is to ensure that employees in the private sector have a basic retirement benefit as they transition out of active employment. It aims to provide financial security for employees after their years of service, recognizing their contributions to the company.
What are the six (6) Key Features of R.A. 7641?
- —: The law applies to all — sector employees who have rendered at least — (—) years of —, except those who are already — by other — — or agreements that provide — —.
- — —: Employees can — upon reaching the age of —, but the law also allows for — at —- ages under — conditions.
- — —: The law stipulates that employees are — to a — — that is equivalent to — — —- for every — of —, where the “— —-“ includes:
The basic —
All —
Other — provided by the employer - — for Retirement Pay: The retirement pay is calculated as: Retirement Pay=(—×—-)×—-
- Additional Provisions:
o Employees who —- before reaching the —- retirement —- are entitled to the — retirement —.
o The law also outlines the employer’s obligations regarding the payment of retirement benefits. - Employer’s Obligation: Employers are — to — the retirement benefits upon the employee’s retirement.
Purpose and Impact
The purpose of R.A. 7641 is to — that employees in the —- sector have a basic retirement — as they transition out of active employment. It aims to provide financial —- for employees after their years of service, recognizing their — to the company.
- Coverage: The law applies to all private sector employees who have rendered at least five (5) years of service, except those who are already covered by other retirement plans or agreements that provide retirement benefits.
- Retirement Age: Employees can retire upon reaching the age of 60, but the law also allows for retirement at earlier ages under specific conditions.
- Retirement Benefits: The law stipulates that employees are entitled to a retirement pay that is equivalent to 1/2 month’s salary for every year of service, where the “month’s salary” includes:
The basic salary
All allowances
Other benefits provided by the employer - Formula for Retirement Pay: The retirement pay is calculated as: Retirement Pay=(1/2×Monthly Salary)×Years of Service
- Additional Provisions:
o Employees who retire before reaching the mandatory retirement age are entitled to the same retirement benefits.
o The law also outlines the employer’s obligations regarding the payment of retirement benefits. - Employer’s Obligation: Employers are required to pay the retirement benefits upon the employee’s retirement.
Purpose and Impact
The purpose of R.A. 7641 is to ensure that employees in the private sector have a basic retirement benefit as they transition out of active employment. It aims to provide financial security for employees after their years of service, recognizing their contributions to the company.
