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CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 98
Topic #: 1
[All CIMAPRA19-F01-1 Questions]

Which of the following is a characteristic of a defined contribution post-employment benefit scheme?

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Suggested Answer: A

by Vi at Sep 17, 2024, 05:53 AM

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Bok
5 months ago
C seems to be the most straightforward and clear-cut answer. Gotta love a predefined formula, am I right?
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Salome
5 months ago
Haha, a contributions holiday? That's like taking a vacation from your retirement savings. I'll have to go with A on this one.
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Daniel
4 months ago
User 3: Haha, a contributions holiday? That's like taking a vacation from your retirement savings. I'll have to go with A on this one.
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Cordelia
4 months ago
User 2: B) The employer would make additional contributions into the scheme if the actuary predicted a shortfall in the funds available to pay post-employment benefits.
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Amber
4 months ago
A) The amount of the post-employment benefits paid to former employees depends on how well the scheme's investments have performed.
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Carlota
5 months ago
But A makes more sense because the benefits depend on investment performance.
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Arlie
5 months ago
D sounds like a risky option, the employer shouldn't be able to stop contributing if the scheme is underfunded. I'd go with C.
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Hollis
4 months ago
It's important to consider the stability of the post-employment benefits.
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Delisa
4 months ago
I would also go with option C.
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Juliana
4 months ago
I think option C is a safer choice.
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Alease
4 months ago
I agree, option D does seem risky.
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Carlota
5 months ago
I think the answer is A.
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Larae
5 months ago
I disagree, I believe it's C.
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Jolene
5 months ago
I think the correct answer is A, as the amount of post-employment benefits paid depends on the performance of the scheme's investments.
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Ruthann
4 months ago
That's right. If the investments do well, the employer may not need to make additional contributions.
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Son
4 months ago
So, the employer doesn't have to make additional contributions if the investments perform well?
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Ngoc
4 months ago
Yes, that's correct. The benefits are not predetermined, they depend on how well the investments do.
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Mari
5 months ago
I think the correct answer is A, as the amount of post-employment benefits paid depends on the performance of the scheme's investments.
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