alleryStart learning →What is it called when a plan sets aside no assets and pays benefits as due?
AFully funded financing
BPay-as-you-go (PAYG)
CCash balance financing
DPre-funded financing
Answer & Solution
Correct answer: B. Pay-as-you-go (PAYG)
Paying benefits out of current resources as they fall due, with no fund built up, is known as pay-as-you-go.
Keep practising Employee Benefits
Browse all Employee Benefits questions for CA Inter, or explore more Accounting topics.
Related questions
Employee benefits mainly aim to increase what for staff?Which US plans let employees choose from a menu of benefits?Employees tend to see mandated benefits as creating what?Which body coined the term fringe benefits during World War II?What is exchanging cash wages for another benefit called?In which year was India's fringe benefits tax abolished?The IASB defines employee benefits as consideration for what?Who prepared the 1943 report that shaped India's health insurance scheme?