Question 1
In a defined benefit (DB) pension scheme, who primarily bears the investment and longevity risk?
Correct Answer:
The sponsoring employer
Question 2
Which actuarial funding method is mandated in India for accounting valuation of gratuity liabilities under Ind AS 19 and AS 15 (Revised)?
Correct Answer:
Projected Unit Credit Method
Question 3
Under the Payment of Gratuity Act, 1972 (India), the standard gratuity formula for a covered employee on the monthly wages basis is:
Correct Answer:
Last drawn monthly wages times 15/26 times completed years of service
Question 4
A DB scheme has an accrual rate of 1/60th of final pensionable salary per year of service. A member retires with 30 years of service and final pensionable salary of Rs 800,000. What is the annual pension?
Correct Answer:
Rs 400,000
Question 5
Under Ind AS 19, where are remeasurements of the net defined benefit liability (actuarial gains and losses) recognised?
Correct Answer:
Other Comprehensive Income (OCI), not reclassified to P&L
Question 1
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About this Exam

Prepare with the IAI SP4 Practice Questions - IAI Subject SP4 Pensions and Other Benefits Exam practice quiz. This question bank includes 100 questions covering scheme, pension, rate, benefit, and gratuity. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IAI SP4 Practice Questions - IAI Subject SP4 Pensions and Other Benefits Exam

This practice set contains 100 questions from the matching question bank and focuses on scheme, pension, rate, benefit, and gratuity. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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