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CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 110 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 110
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 Susy at Apr 07, 2025, 04:59 AM

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Loise
2 months ago
B seems like the most logical choice to me. The employer has to step in if the funds are insufficient. I'd rather not depend on the whims of the stock market, thank you very much.
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Avery
12 days ago
B seems like the most logical choice to me. The employer has to step in if the funds are insufficient. I'd rather not depend on the whims of the stock market, thank you very much.
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Tenesha
1 months ago
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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Rashad
1 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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Patria
2 months ago
Ha! D is clearly the funniest option. The employer can just take a 'contributions holiday' if the assets are sufficient. Like a paid vacation, but for the company!
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Avery
2 months ago
C is the answer, no doubt about it. The benefits are determined by a predefined formula, not investment performance. This exam is a piece of cake!
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Ryann
2 months ago
That's a valid point, but I still think A) is more likely based on the characteristics of defined contribution schemes.
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Pete
2 months ago
I disagree, I believe the answer is C) because benefits should be predetermined.
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Ryann
2 months ago
I think the answer is A) because it makes sense for benefits to depend on investments.
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Charlene
2 months ago
Hmm, I thought option B was the right one. The employer has to cover any shortfall in the funds, not the employees. What a drag!
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Jamal
1 months ago
User 2: Oh, I see. I thought the employer had to cover any shortfall in the funds. Thanks for clarifying!
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Denny
1 months ago
User 1: I think option A is correct. The benefits depend on how well the investments perform.
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Gerald
2 months ago
Option A is the correct answer. The amount of benefits paid depends on the scheme's investment performance, not a predefined formula.
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Junita
13 days ago
Exactly, the employer's contributions are based on the scheme's investments.
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Jamey
15 days ago
So, the benefits are not determined by a predefined formula, but by the investment performance.
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Tonja
16 days ago
I agree, that's the characteristic of a defined contribution post-employment benefit scheme.
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Luis
17 days ago
I think the correct answer is 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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Louvenia
19 days ago
Exactly, the employer's contributions are based on the scheme's investments.
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Gerald
20 days ago
So, the benefits are not determined by a predefined formula, but by the investment performance.
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Hoa
24 days ago
I agree, that's the characteristic of a defined contribution post-employment benefit scheme.
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Gwenn
1 months ago
I think the correct answer is 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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