Defined Benefit Plan: Investment Options and Factors to Consider

DEFINED BENEFIT
PLAN
Module Number-
[DATE]
HEWLETT-PACKARD
[Company address]

Table of Contents
Introduction............................................................................................................... 1
Description of the different plans..................................................................................... 1
Investment choice plan.............................................................................................. 2
Defined benefit plan................................................................................................. 2
Factors of tertiary sector employees to decide the superannuation contribution in defined benefit plan
and other choice investment plan..................................................................................... 3
Issues of time value of money, tax deduction and other factors................................................5
Conclusion................................................................................................................ 6
References............................................................................................................. 7

Introduction
There are several various investment options used by tertiary sector employees to
create value on their investment. It is considered that due to the increasing tertiary sector of
the economy, the people are enabling to satisfy their service requirements. The difference
between the service requirement and its fulfillment is decreased to the sphere which can be
ignored. There was a problem in the tertiary economy about the demand by the consumer for
the services of high quality, which has been passed out now and now it is not a tension
anymore for the tertiary economy. To fulfill the requirements of customers, such economy
sector provides every possible service. In the current economic conditions, the development
of any economy can be measured when the focus of economy shifts to the tertiary sector from
the primary or secondary sector. The service list of the tertiary sector includes various
services and businesses such as Restaurants, transportation, salon services, schools, financial
institution, and others. The employees employed under such economic sector are called
tertiary sector employees. In addition to the basic salary, these employees get several other
benefits which can be in cash or in other kinds.
Superannuation contribution
The Superannuation contribution is one of the benefits provided to these employees.
This benefit is not paid to the employees in their service tenure but at a future date to provide
them security in the future. This is quite similar to the pension fund. For such benefit, both
employer and employee contribute a proportion of amount towards such a fund. The creation
of such a fund gives a spirit of future financial security to the employee. The creation of
funds has a variety of contribution which depends from country to country. In Australia, The
superannuation fund offers the employees two major option for contribution i.e. defined
benefit plan and other investment choices.
Description of the different plans
The tertiary employees have several options for investment to increase the overall return on
capital invested (Wall, 2015).