A pension plan, an employer's acknowledgement of financial standing of employee's account, placing percentage on the basis of annual compensation and interest, regarded as?

Correct answer: A. cash balance plan

  • A. cash balance plan
  • B. severance pay plan
  • C. early retirement window plan
  • D. employee stock ownership plan

Explanation

A cash balance plan credits an employee's account with a stated percentage of compensation plus interest, creating a declared account balance for retirement. It is not an employee stock ownership or severance arrangement.

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About Human Resource Management

Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.

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