Chapter5-Benefits overview and providers of benefits

Question 1

Framework

Answer 1

1 Types of pension schemes
2 Main provider of benefits
3 Key roles of the state in relation to benefit provision
4 Benefits provided by the state
5 Employers role in benefit provision
6 Reasons for employer financing benefits
7 Multi-employer schemes
8 Flexible benefits system for employees
9 The individual’s role in benefit provision
10 Domestic property as a source of benefits
11 The financial institution’s role in benefit provision
12 Other organisations providing benefits
* Funded vs unfunded benefit schemes

Question 2

Funded vs unfunded benefit schemes

Answer 2

Unfunded:
No money set aside in advance and money found as each payment is made.
Pay-as-you-go basis (Paid from current income rather than fund)

Funded:
Money is set aside before the benefit payments are made and investment returns can be earned on this money.