Mervaux SA pays each year to an independent insurer a fixed contribution equal to 4% of pensionable salaries, that is 96,000 for the year, for its employees' retirement. The contract imposes no obligation on Mervaux to pay more if the benefits promised to employees turn out to be insufficient, and Mervaux has no constructive obligation to that effect (case facts). Write a short justification of the classification of the plan and of the expense for the year, distinguishing rule, case facts and conclusion.
JudgmentIntermediatePublished