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A company currently has a contributory pension scheme - defined contribution. It is considering to introduce a retention benefit scheme whereby the employee and the employer contributes and fund is managed by an independent fund manager. Qualification for returns from the new scheme is premised on completion of at least 5 years in service.
Question 1. Can we term the new scheme a defined benefit scheme?
Question 2. What will be the IFRS considerations prior to the set-up?
Question 3. If response to 1 above is in affirmative, can a company assess benefits to her employees both as defined contribution and defined benefit at a time?
in IAS 19 - Employee Benefits by

1 Answer

0 votes
My answers:
Q1 - Yes we can
Q2 - Nothing in particular. You may see the tax implications as per local tax rules.
Q3 - Benefits to the employees has nothing to do with your company as I understand. Are you referring to contributions to the plan by the company? If it is the case, it is defined contribution.