What type of payments does the Pension Scheme provide to employees?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Prepare for the EPF Honors Essentials exam with flashcards and multiple choice questions that include hints and explanations. Boost your confidence and ace the test!

The correct response highlights that the Pension Scheme is designed to provide monthly pension payments post-retirement. This is a fundamental feature of such schemes, as they aim to offer financial security and support to employees after they have completed their working years. The monthly payments are intended to help retirees manage their ongoing living expenses, ensuring a steady income that can supplement other sources of retirement savings or Social Security benefits.

In contrast, other forms of compensation listed, such as bonus payments at the end of employment, one-time lump sum payments, and commission payments based on final salary, do not reflect the primary goal and structure of a traditional pension system. Bonus payments and commissions are often tied to an employee's performance and the company's profitability, thus serving more as incentive compensation rather than a consistent source of income in retirement. Similarly, one-time lump sum payments do not provide the ongoing financial support essential to retirees for their regular expenses.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy