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Unit 4.2: Contributions and the Employer Covenant
Unit 4.2 covers where the money comes from. It looks at the employer covenant, meaning the employer’s legal obligation to the scheme and its financial ability to meet it, how contributions are determined in a defined benefit scheme through the schedule of contributions and any recovery plan, which the syllabus marks DB only, and the sponsoring employer’s role in calculating and collecting member contributions in a defined contribution scheme, marked DC only. Covenant assessment connects back to Module 3, because the risk a scheme can take with its investments depends on the employer standing behind it.
What’s in it.
3 topics- Topic 01
The Covenant
Coming soon - Topic 02
The Determination of Contributions (DB Only)
Coming soon - Topic 03
The Role of the Sponsoring Employer in the Calculation and Collection of Member Contributions (DC Only)
Coming soon