Looks like this is the first year for the topic benefit pension plans, and I’m almost sure that is going to be a question on this topic. Does anyone have any tip or idea for understanding it? For me it looks like you cant understand it, but you need memorize… The same apply for GIPS, excepts that this is not the first year for GIPS.
What is Benefit pension plan?
do you mean the Defined Benefit Pension Plan, if that is what you meant, it has been around for some times now, and you should read it up, because u cant tell if it will be tested or not.
Plus, its interesting and not difficult.
If your employer guarantees you a certain payment on a monthly basis after retirement, then that is a defined benefit pension plan in which the empoloyer takes the risk of the investment, and in the case of defined contribution, the firm simply make contributions to the employee’s pension account, with the employee facing the investment risk of the pension plan…
so see it from that angle, so simple.
For GIPS, we you just have to read and understand it, and definitely cram some stufs, as you dont no if it will be tested.