Question 49 Encik Abu has been working for a company for 30 years and will retire next month. The terms of his employment state that the company will pay him a yearly pension based on 2.0% of average annual salary for the last 5 years multiplied by years in service. What type of retirement plan is this? A. An Employees Provident Fund. B. A Defined Benefit Plan. C. An Employees Retirement Plan. D. A Contributory Retirement Plan.
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This is not a contributory plan, as there is no mention of the employee contributing to the fund. It is also not an Employees Provident Fund or an Employees Retirement Plan, as these are specific types of retirement plans that have their own set rules and Show more…
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