What is the first question that should be asked when determining the amount of retirement income an employer should provide?
A)Should Social Security payments be factored in when considering the level of income an employee should have during retirement?
B)How should seniority be factored into the payout formula?
C)What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings?
D)Should other postretirement income sources be integrated with the pension payment?

Question

Quizplus · Accepted Answer

The first question that should be asked when determining the amount of retirement income an employer should provide is what level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings. This will provide a baseline for determining the contribution levels required to achieve the desired benefit level. Other questions, such as whether to factor in Social Security payments or other postretirement income sources, can be addressed once the target benefit level has been established. Seniority can also be factored into the payout formula, but this will depend on the specific plan design chosen by the employer.

What Is the First Question That Should Be Asked When