Your client, ABC Sdn Bhd is considering implementing some form of retirement plan. The client's stated objectives for the plan, in order of importance are: I Rewarding all of its eligible employees II Retention of employees on a long term basis III Providing a retirement gratuity IV Passing the risk back to employees The company has been in business for more than 15 years, but the past decade has not been very profitable. Based upon the stated objectives, you advise ABC Sdn Bhd that the most suitable retirement plan for the company would be: A. A defined-benefit plan B. A combination of defined-benefit plan and defined-contribution plan C. A non-approved plan D. A defined-contribution plan
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Rewarding all of its eligible employees: Both defined-benefit and defined-contribution plans can achieve this objective. II. Retention of employees on a long term basis: A defined-benefit plan is more likely to achieve this objective as it provides a guaranteed Show more…
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