Contributory Plan Definition and Explanation PDF Download
Learn Contributory Plan definition in hrm with explanation to study “What is Contributory Plan”. Study contributory plan explanation with HRM terms to review HRM course for online MBA programs.
Contributory Plan Definition:
Pension plan in which the money for pension benefits is paid in by both employees and employers.
Human Resource Management by Robert L. Mathis, John H. Jackson
Contributory Plan Explanation:
Contributory plan is a retirement plan that requires current workers or retirees to pay for a bit of the arrangement cost. Contingent upon the particulars of the arrangement, these commitments may trigger expanded advantage installments. Most retirement plans are contributory plans or need to monitor the last representative contributory adjusts against advantages that are gotten, in light of the fact that workers are qualified for full recuperation of their commitments. Besides, any after-charge commitments are recouped as nontaxable advantages, while the intrigue is assessable. Contributory plans may empower representatives to buy administration for particular kinds of periods, for example, time worked under another arrangement, or time spent on military leave. To buy the administration, representatives must give the arrangement a measure of cash that is proportional to what they would have contributed had they been taking an interest during that time. The buy sum additionally incorporates proper intrigue.
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