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Personal retirement products:
Retirement plan is considered to be one of the big issues to think about when joining a company or an organization. Knowing about the different products the company offers is an important aspect to ask about. Retirement products are available through two different ways; defined contribution plan and defined benefit plan.
Defined contribution plan specify the amount of the contribution that the employer/government is willing to provide in addition to the employee contribution. This type is mostly used due to its easiness, law risk, and non-expensiveness but in the other hand, it needs more skills for employees in order to make good investment decisions.
In defined benefit plan there is no contribution involved, instead the company will specify the benefit that will be paid to the employees after retirement if certain conditions met. Such conditions can be 30 years working at the company and/or at least 60 years age at retirement. To illustrate further we took Al-Diwan as an example.
To illustrate the retirement products Al-Diwan provides number of concepts will be explained:
• Period required in order to be vested.
• Retirement rules and income.
• Alternatives for non-retired employees.
• Other retirement benefits.
• Al-Diwan pension fund.
Period required in order to be vested:
The period is calculated by being working in any of the permanent jobs in Al-Diwan or any of the country’s administrative apparatus. Within it the period of workshops, training courses, and any paid holidays will be counted.
The employee may ask to include t ...