Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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There are mainly 2 methods of pension schemes: 'Pay as you go' pension schemes,' Fully tuned' pension schemes.
A plan that is funded on a 'Pay as you go' basis means that no money is invested for the plan, as retiree benefits become due the plan sponsor makes the payments directly.
In Fully funded pension schemes, a pension plan has enough assets to totally pay off benefits earned to date; if no one earned any more benefits in the future, no additional money is expected to be needed to pay for current benefits
Section 4 of the Income Tax Act deals with the charge of income tax.
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