Benefits - Schemes

Question 1

Defined benefit

Answer 1

1. Rules define benefits independently of contributions payable
2. Benefits not directly related to investment
3. Scheme may be funded/PAYG

Question 2

Defined contribution

Answer 2

1. Benefit amount depends on individual members contributions to scheme
2. Also depends on investment return earned on contributions

Question 3

Benefit schemes - Hybrid

Answer 3

Risks are shared between different parties

Question 4

What is a Medical benefit

Answer 4

1. Indemnifies (partially) members and dependants from medical expenses incurred
2. In or out of hospital - depends in plan selected
3. Option selected determines contributions
4. Ability to uw may be restricted