Question

1. An efficient pension plan design requires the identification of all sources of benefits for a retired employee. What plans should be considered as potential sources of benefits?
   

Answer 1

The potential sources for benefit for a retired employee can be several as following:

1) The current in hand salary (This is most important as this gives the most of retirement corpus)

2) Gratuity (Gratuity is given to the employee when his/her tenure of the service is more than certain years(4))

3) Income from other sources (The employee can have multiple source of income which can contribute to retirement corpus)  

4) ESOP (Employee stock option)

5) Capital gain where he/she is a nominee on for other's insurance.

6) Medical Insurance from the employer etc.