An arrangement whereby an employer puts up a trust fund to provide for the payment of retirement benefits to its employees in accordance with the law. The two types of Employee Benefit Plans are as follows:
STAFF PROVIDENT FUND
A contributory type of plan wherein both the employer and employee contribute periodically to the fund.
A non-contributory type of plan wherein the employees do not contribute any amount to the fund. The corporation or employer provides the necessary funding based on the recommended annual outlay by an independent actuary.