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

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 110
Topic #: 1

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

AThe amount of the post-employment benefits paid to former employees depends on how well the scheme's investments have performed.

BThe employer would make additional contributions into the scheme if the actuary predicted a shortfall in the funds available to pay post-employment benefits.

CThe amount of the post-employment benefits paid to former employees is determined at the date of their retirement using a predefined formula.

DThe employer may take a contributions holiday and stop paying contributions for a period, if the scheme's assets appear to be more than are required to meet the scheme's obligations.

Show Suggested Answer

Suggested Answer: A

by Susy at Apr 07, 2025, 04:59 AM

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Charlene

3 days 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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Gerald

9 days 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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