StudentShare solutions
Triangle menu

The nature of pension plans with focus on defined contribution pension plans and defined benefit pension plans - Research Paper Example

Nobody downloaded yet

Extract of sample
The nature of pension plans with focus on defined contribution pension plans and defined benefit pension plans

“Actually, an individual who periodically invests in stocks, bonds, certificates of deposit (CDs), or other investments for the purpose of saving for retirement is establishing a personal pension fund. Often, such individual plans take the form of individual retirement accounts (IRAs) to take advantage of tax breaks offered by that arrangement” (Part A: The nature of Pension Plans n.d. p. 1010). Pension funds must be controlled. They have managerial responsibilities? create decisions on the subject of benefits and entitlements and, in some cases, guarantee that long-term duties are met in the circumstance of uncertainty and risk. As such, it is debatable that pension funds are like other financial organizations, which have objectives and goals in addition to procedures that help attain these objectives and goals are realized. Pension plans often increase productivity, decrease turnover, gratify union demands and permit employers to fight in the labor market. Corporations set up pension plans for various reasons. Sponsorship of such plans provides workers with an amount of security during the time of retirement and accomplishes a moral duty felt by many employers. This security also encourages the level of job satisfaction and possibly loyalty that might increase productivity and decrease turnover. Defined Contribution Plans: A defined-contribution plan is a kind of plan in which workers’ benefit for the period of retirement depends on the contributions made as well as the performance of the investment of the assets in his or her account, rather than on the workers’ years of service or history of earnings. Like a classic savings account, a defined-contribution account includes a particular balance at any given time, which is up to the market value of the assets gathered in the account. Unlike in the case of a defined-benefit plan, workers have significant control over how the donations and contributions to their plan are invested and may normally prefer an assortment of stocks (frequently including company stock), mutual funds, bonds, and other investment vehicles. These pension plans assure fixed yearly contributions to the pension fund (say, 5% of the workers pay). Employees prefer (from designated alternatives) where funds are invested generally? that is? in fixed-income or stocks securities. Retirement disburse depends on the volume of the fund available during retirement. In a defined contribution plan, investment rewards and investment risks are assumed by every worker or retiree and not by the employer or sponsor. This risk could be considerable. Based on simulations from safety returns over the 20th century across 16 states, there can be seen substantial variation in pension fund ratios across both the country as well as different time periods in the same country. “There are several types of defined contribution plans, including money purchase plans, profit-sharing plans, 401(k) arrangements, savings plans, and employee stock ownership plans (ESOPs). These are described briefly below” (Defined Benefits and Defined Contribution Plans: Understanding the Differences, n.d. p. 2). Advantages: Observe money and develop ...Show more


The Nature of Pension Plans with Focus on Defined Contribution Pension Plans and Defined Benefit Pension Plans Name of Author Author’s Affiliation Author Note Author note with more information about affiliation, research grants, conflict of interest and how to contact The Nature of Pension Plans with Focus on Defined Contribution Pension Plans and Defined Benefit Pension Plans Nature of Pension Plan: Pension plan is a kind of arrangement by which an employer offers payments or benefits to workers after they retire?…
Author : bridgetkoss
The nature of pension plans with focus on defined contribution pension plans and defined benefit pension plans essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"The nature of pension plans with focus on defined contribution pension plans and defined benefit pension plans"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Pediatric Nursing Care Plans

According to the author, nurse care planning is the application of the nursing process to a specific client situation. Nurses play an important role in the health promotion of an individual due to their direct contact and proximity with the patients. The 3 basic roles of a nurse are that of a practitioner, leader and researcher.

11 pages (2750 words) Research Paper
San diego pension crisis
There was a need to refurbish the city’s convention center in order to host the event. Instead of raising taxes or even issuing bonds to raise fund that would facilitate the rehabilitation, the officials in San Diego are said to have dipped into the pension funds of the city for the money.
5 pages (1250 words) Research Paper
Incentive Plans
 According to management theories, incentives, particularly financial incentives are the best way to improve employee contributions to the organization. Under salary incentive plans, employees are paid a fixed rate of compensation regardless of the organization’s sales volume
3 pages (750 words) Research Paper
Lesson plans
They are asked to do the same activity among themselves, recording each other’s number of rounds on the mini-track in a span of three minutes. The whole class then goes to the classroom for a discussion. 2. The teacher asks the class to work in groups and find a way to
16 pages (4000 words) Research Paper
Adopting Plans
ital for them to have one (Gallant, 2008, p.15) .However, many emergency planners tend to implement emergency plans from other locations and this could not be a good move. This is because of the following reasons. First, each location differ in size, therefore it is
1 pages (250 words) Research Paper
How employers are dealing with the retirement of the baby boomers
We are currently living in a knowledge-based economy which implies that employers can best create value through the effective development and application of intellectual capital. Therefore, it is very obvious that employers stand
17 pages (4250 words) Research Paper
Incentive Pay Plans
This plan suffers from the weakness of difficulty in job performance specification and measurement, identification of valued rewards and linking rewards to performance. To
1 pages (250 words) Research Paper
Employer-sponsored Retirement Plans
The pay and compensation system should be uniform across job families and point factor. The amount of money, as has been analyzed can be spent only in a span of five years,
1 pages (250 words) Research Paper
Portfolio Asset Allocation on LEE Pension Fund
There were evidences of positive and negative correlation coefficients, which described the direction of movement between every asset class. For instance, long term
8 pages (2000 words) Research Paper
Individual vs group incentive plans
There is diversity in the issuance of performance goals that can be based on the skills, workload and ranks of the employee. The organization is capable of setting different individual standards in various
2 pages (500 words) Research Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us