1. #1
    Unregistered

    What is meant by Fixed Benefit Plan in company? What is the advantage in applying for it?

    As I am new to the corporate atmosphere, I am not pretty much aware of the different things in companies which are like Fixed Benefit plans and so on, what it exactly means? What is the advantage in applying for it? Is it really helpful if apply some amount in Fixed Benefit plans? What is the real use of doing that?

  2. #2
    Rituja Array
    Join Date
    Nov 2012
    Posts
    702

    Re: What is meant by Fixed Benefit Plan in company? What is the advantage in applying for it?

    Fixed Benefit Plan is also known as defined benefit plan. A fixed benefit plan is a retirement account for which your employer does all the work, including ponying up the money and deciding where to invest it. It promises you a set pay out when you retire, based on your salary and how long you worked there. The employer will decide or take decision regarding how much money to contribute, how to invest and where to invest. At the end of your service period, that is after retirement, you will get the amount of money in bulk.If an employee leaves the company before retirement, the benefits earned so far are frozen and held in a trust for the employee until he or she reaches retirement age.

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