1. Accumulated fund: This is the main object of any pension scheme. It is the pool of funds that are accumulated over time by contributions made by the pension scheme participants. The accumulated fund is used to pay pensions to participants when they retire.
2. Investment strategy: A well-designed pension scheme must have an investment strategy that aims to maximize returns on the accumulated fund while minimizing risks. The investment strategy should be tailored to the risk appetite and investment objectives of the pension scheme participants.
3. Pension benefit calculation: Pension schemes have different methods of calculating pension benefits. Some schemes use defined benefit formulas, while others use defined contribution formulas. The pension benefit calculation is an essential object of the pension scheme as it determines the pension payments that the scheme participants will receive in retirement.
Highlight three object of the pension scheme
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