A company currently has a contributory pension scheme - defined contribution. It is considering to introduce a retention benefit scheme whereby the employee and the employer contributes and fund is managed by an independent fund manager. Qualification for returns from the new scheme is premised on completion of at least 5 years in service.
Question 1. Can we term the new scheme a defined benefit scheme?
Question 2. What will be the IFRS considerations prior to the set-up?
Question 3. If response to 1 above is in affirmative, can a company assess benefits to her employees both as defined contribution and defined benefit at a time?