...Article Review: Pension Plans Benefits HRM 599 Devry University’s Keller Graduate School of Management October 7, 2013 Professor Brian Nisbet Yolanda M. Green Pension Plans The article entitled “Pension Plans” was written by Al Thomas, with means of informing workers of the different types of retirement plans that should be accessible by their employer. The article was also written to explain which of those plans are better for employees to choose from in order to maximize the amount of money that they will receive after retirement. During the time of this articles publishing, it appeared that some companies were using unreal rate of returns for projections of better profits (Pension Plans). The rest of this article review will give insight on the two different options that employees can choose from when deciding on retirement plans and how to be sure that each move after will help them achieve their main goals, which should be retirement savings. The article mentions the first type of pension plan that is available to employees, which is called the “Defined Contribution Plan”. Under this plan you will be able to put in any amount of money into your retirement plan and in return the company will match a certain percentage of that. During this week in our class discussions we talked a lot about employer match contribution amounts and if we thought that it was enough for someone to survive at retirement. A lot of classmates...
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... HR599 Employee Benefits Article review Coca-Cola tries new funding tack. By Bradford, Michael 3/21/2011 Summary of the article (2-3 paragraphs maximum). Why was the article written about the topic at the current time? This should be completed in your own words and talk about the key points of the article. You should not repeat the article in your summary. Coca-Cola the giant beverage company’s risk manager is saying that they came up with a new program, that reinsures certain of their obligation through some insurance company, that will make them gain more power over its pension liabilities. Laurie Solomon, Atlanta-based Coca-Cola’s director of risk management is saying that this new program is their most innovative process they have never came up with. She also said that Coca-Cola Reinsurance Service Ltd, the company’s Dublin-based captive, started to reinsure annuity goods written by another insurer so they can fund pension commitments in Ireland and the United Kingdom. Coca-Cola is planning to expand this brilliant program, we also know that it’s the first of its kind to be recognized in Ireland and Stacy Apter who is a senior global benefits consultant working for Coca-Cola said that it’s the second such program that exist today in this world. A program like that was established by a large energy organization in Europe she is saying too. In this article we learn also that Coca-Cola reinsurances is around $400 million in...
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...PRE-BUDGET REVIEW: AUTUMN STATEMENT 2012 1101 4457 Contents Page 1.0 Introduction 2.0 Three Key Issues 3.0 Key Issue Proposed 4.0 Conclusion 5.0 References 6.0 Bibliography Introduction The purpose of the pre budget review is to draw the attention of investors to the proposed changes to be made to the economy and also be able to make necessary arrangement to adapt to the policy. The 2012 pre budget proposed by the Chancellor is based on three key issues; the Personal Allowance Increase, which is meant for the aging population, an issue which has always been addressed from previous budgets. The purpose of the increase in Annual Investment Allowance is to support small and medium firms to boost production from £25,000 - £250,000 for just a short period of two years. Lastly, the pension savings allowance decrease, which the government aims to use for reducing its budget deficit by a quarter of a million pounds that would be of benefit on the long run. These subjects shall be addressed in details on how it would have an effect on the government, employees, employers, corporations, and pensioners because this change would either affect them positively or negatively. This change would be of benefit to the pension scheme on long terms basis based on the fairness of tax treatment for the basic taxpayers who would benefit £170 while the higher rate tax payers by £42.50, giving an estimate of 23.6 million taxpayers gaining from the reductions...
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...as the timing and risk of investments factor into which retirement plan(s) an individual should utilize. This review will analyze various types of plans and include the prevalence of these plans, as well as the tax savings or cost to the federal government. There are several major sources of retirement income for the retired, including Social Security, employment based pensions and annuities, part-time work, and personal savings and investment. According to the Employee Benefit Research Institute, nearly 90% of all retirees receive some type of benefits from Old Age, Survivors and Disability Insurance (OASDI), or Social Security. This is the largest source of income and accounts for 40% of all income during retirement. These benefits are extremely important for the lower income population, who rely on Social Security for nearly 90% of their income. In fact, 21% of retirees rely solely on these benefits. The highest income population relies more heavily on earnings, with Social Security, pensions, and investments accounting for approximately 20% each of their remaining income. The second largest source of income, accounting for nearly 25% of the older population’s income after retirement, is earnings. Only about 20% of the population works after retirement, however that issue is outside the scope of this review. About 35% of retirees receive some type of pension or annuity, which accounts for 20% of their income in retirement. Income from assets, from...
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...Policy Research Institute, Ministry of Finance, Japan, Public Policy Review, Vol.8, No.1, June 2012 45 Public Sector Accounting - An Interdisciplinary Field Involving Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between...
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...Contributions to 401(k) Retirement Plans. (Pension Research Council Working Paper). Retrieved from http://www.archetype-advisors.com/Images/Archetype/Participation/how%20much%20is%20too%20much.pdf. Gering, J., & Conner, J. (2002). A Strategic Approach to Employee Retention. Healthcare Financial Management, 40-44. Retrieved from http://www.library.armstrong.edu/eres/docs/eres/MHSA7650-1_CROSBY/7650_employee_satisfaction_retention_1.pdf. Kotlikoff, L., Wise, D. (1987). Employee Retirement and a Firm's Pension Plan (Working Paper, 2323). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w2323.pdf Milkovich, G. T., Newman, J. M., & Milkovich, C. (2013). Compensation (11th Ed). Burr Ridge, Ill.: Irwin/McGraw-Hill. Wise, D., Stock, J. (1988). Pensions, the Option Value of Work, and Retirement. (Working Paper, 2686). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w2686.pdf. Stock, J. H., & Wise, D. A. (1990). The pension inducement to retire: An option value analysis. In Issues in the Economics of Aging (pp. 205-230). University of Chicago Press, 1990. Bodie, Z., Marcus, A. J., & Merton, R. C. (1988). Defined benefit versus defined contribution pension plans: What are the real trade-offs?. In Pensions in the US Economy (pp. 139-162). University of Chicago Press. Choi, J. J., Laibson, D., Madrian, B. C., & Metrick, A. (2002). Defined contribution pensions: Plan rules, participant choices,...
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...paper is to summarize the effects of accuracy and reliability of accrued expenses for financial information provided to users based on academic information. I will evaluate several key factors that are involved in accruing for expenses and how accruals affect a company’s financial statements. Included will be GAAP’s matching principle and FASB guidance on accruals. Other sources examined will from several academic articles. The results indicate that accruing for expenses maintain the matching concept. Accruals help avoid deceptive income statements that could result from the timing of cash payments. Table of Contents Abstract …………………………………………………………………………………...2 Table of Contents …………………………………………………………………………3 Introduction …………………………………………………………………………….....4 Literature Review ………………………………………………………………….. …......5 Locating Financial Misstatements: Where to Look……………………………....5 Accounting for the Costs to treat Environmental Contamination…………………7 Coping with FASB Statement No. 106-- "Accounting for Post-retirement Benefits Other Than Pensions…………………………………………………8 On the Implementation of Accrual Accounting: A Study of Conflict and Ambiguity……………………………………………………………………..8 Depreciation Rules and the Relation between Marginal and Historical Cost…….9 The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition…...9 On Matching Revenue with Expense……………………………………………10 Matching and the Changing Properties of Accounting over the Last 40...
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...The 4-2-1 Phenomenon The main purpose of this essay is to review the effect on how this structure has affected, affects and is a big challenge for China’s development. It all starts far back in 1979 when the one child policy was introduced. At first it was a measure aiming to control the rapid growth of the population, now the country is facing its consequences. (Dvorsky) By the midpoint of the century, more than a quarter of the Chinese population will be over 65. And it will be at this point in time (if not sooner) that young adults will face an unprecedented burden of care — what's been dubbed the 4-2-1 problem. China already has the world’s largest elderly population and it is expected to increase. Elderly people aged 60 and above will grow by 100 million in just 15 years (from 200m in 2015 to 300 by 2030). This argument in the increase of elderly people will lead to an increasing demand for services and expenditures related to health care, the cost of which will fall upon China’s only children. The one-child policy has created a situation in China in which there are too few young people to support a growing, aging population. This scheme basically stipulates that a child would bear the responsibility of providing to his/her grandparents (usually 4) parents as they cannot rely on siblings or other family members during their old age, himself and on top of that, his future family. Even with high savings rates, it seems unlikely that the younger generation will...
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...Introduction In this study the researcher has included some literature reviews from many sources such as articles, journals and others. Literature review can be defined as the documentation of a comprehensive review of the published and unpublished work from the secondary sources of data and information in the area of specific interest to the researcher (Sekaran, 1992). In this chapter content the literature review of the independent variable and dependent variable. The dependent variable is saving behavior. The independent variables are financial literacy, spending behavior and self-control. 2.1 Saving Behavior (Dependent Variable) Chandra and Long (2013) examined the determinants of saving in the process of economic development, in the...
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...Do I Need a Bibliography? A bibliography is not just “works cited.” It is all the relevant material you drew upon to write the paper the reader holds. If you read any articles or books in preparing you paper, you need a bibliography or footnotes. If you cite the arguments of “critics” and “supporters,” even if you don’t name them or quote them directly, you are likely referring to information you read in books or articles as opposed to information you’ve gathered firsthand, like a news reporter, and so you need a bibliography. If you quote sources and put some of the reference information in the text, you still need a bibliography, so that readers can track down the source material for themselves. If you use footnotes to identify the source of your material or the authors of every quote, you DO NOT need a bibliography, UNLESS there are materials to which you do not refer directly (or if you refer to additional sections of the materials you already referenced) that also helped you reach your conclusions. In any event, your footnotes need to follow the formatting guidelines below. How to Write a Bibliography These guidelines follow those of the American Psychological Association and may be slightly different than what you’re used to, but we will stick with them for the sake of consistency. Notice the use of punctuation. Publication titles may be either italicized or underlined, but not both. Books Books are the bibliography format with which you’re probably most...
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...Do I Need a Bibliography? A bibliography is not just “works cited.” It is all the relevant material you drew upon to write the paper the reader holds. If you read any articles or books in preparing you paper, you need a bibliography or footnotes. If you cite the arguments of “critics” and “supporters,” even if you don’t name them or quote them directly, you are likely referring to information you read in books or articles as opposed to information you’ve gathered firsthand, like a news reporter, and so you need a bibliography. If you quote sources and put some of the reference information in the text, you still need a bibliography, so that readers can track down the source material for themselves. If you use footnotes to identify the source of your material or the authors of every quote, you DO NOT need a bibliography, UNLESS there are materials to which you do not refer directly (or if you refer to additional sections of the materials you already referenced) that also helped you reach your conclusions. In any event, your footnotes need to follow the formatting guidelines below. How to Write a Bibliography These guidelines follow those of the American Psychological Association and may be slightly different than what you’re used to, but we will stick with them for the sake of consistency. Notice the use of punctuation. Publication titles may be either italicized or underlined, but not both. Books Books are the bibliography format with which you’re probably most...
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...10.5923/j.ijfa.20130207.04 Role of Pension Funds in Financial Intermediation Ondabu Ibrahim Tirimba Finance and Economics Department, PhD Candidate Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya Abstract This paper aimed at discussing the various roles that pensions play in financial intermediat ion. Descriptive research design was adopted with the population being all the available literature on the online web as pertaining pension funds and also financial intermed iation. Using key word characters, the search in itially identified 50 journals and after a tentative scrutiny, 37 journals were selected in a random sampling manner in o rder to give the birth of this discussion paper. The key objective of this article was to discuss the role of pension funds in financial intermed iation. A mong the roles identified in this paper were; provision of a mechanis m for pooling of funds and subdivision of shares, provision of ways to transfer economic resources, provision of ways to manage uncertainty and control risk, provision of ways to manage uncertainty and control risk, provision of pricing informat ion and the provision of ways to deal with incentive problems. This paper provides practical insights into the roles of pension in financial intermed iation and thus highlighting the key importance of such pension funds into the success of any economy. This paper is one of the very first to recognize the key roles that pension funds play in the 21st century. Keywords...
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...14:30 [MB1.437] FINA 411/2C Wednesdays 11:45 - 14:30 [MB5.255] Office Hours: Mondays and Wednesdays 15:30 -- 16:30 [Please e-mail me first to confirm] and by appointment COURSE DESCRIPTION: This course focuses on modern investment theory and its application to the management of entire portfolios. It will consist of lectures, discussions of cases and articles, and video presentations. Topics include: a) construction of optimal asset portfolios using techniques such as the single index model, b) extensions of the capital asset pricing model: theory and tests; example, the zero-beta model, c) criteria for evaluation of investment performance, d) active vs. passive portfolio management, e) investment strategies. The Formula Growth Investment Centre Lab will be used to demonstrate the use of specialized investment software. Computer exercises are assigned to illustrate the application of the theory. Prerequisites: FINA 380 or 385; FINA 390 or 395. LEARNING OBJECTIVES To understand the theory and practice of Portfolio Management for Individuals and Institutions, e.g. Endowments, Mutual Funds, Pension Plans, etc. To learn about the key Asset Pricing Models. REQUIRED: Text: Bodie, Zvi, Alex Kane, Allan J. Marcus, Stylianos Perrakis, Peter J. Ryan and Lorne Switzer, Investments, 8th Canadian edition, McGraw-Hill, 2014 [BKMPRS] Text website: http://highered.mcgraw-hill.com/sites/0070071705/student_view0/index.html FINA 411...
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...GASB 68: An Examination of Affects to the Pension Problem Including Stakeholder Interests Private retirement systems are regulated by the Pension Benefit Corporation (Employee Retirement Income Security Act of 1974); state and local governments are not subject to federal regulation but rather voluntarily comply with GASB standards. (Mattrell, 2013) With all the newsworthy stories involving public pensions, analysts were becoming increasingly critical of GASB regulation over the pension systems. When compared to the requirements of the private retirement systems, it was lacking in transparency. Thus, GASB replaced statement 27 with 68. Government entities with a financial period ending June 30, 2015 will be first to experience the implementation of GASB 68. Many feel that GASB 68 is part of the solution for the ever-increasing public pension crisis in the United States but is reporting for the first time ever in most cases a rather large Net Pension Liability (NPL) on the face of the financials going to solve the problem of underfunded pensions. Employees within the public sector generally enjoy a rather generous pension when compared to others but when they are looked at for their sustainability they fail miserably. Chicago retirement system for teachers, fire fighters and others us underfunded by nearly $24 billion, with residents facing potential 150% increase in property taxes. (Birrer, 2014) Public pension systems in the United States are in need of change if they...
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...Why reproduction is a need. Reproduction may not seem important because of the large populations today, but it is a basic need that we aren’t meeting here in the United States. Corning lists it as one of the fourteen basic needs because it is crucial for the survival of the species and will cause a variety of harms if it is not satisfied. It’s common knowledge that in order for a species to survive, it must reproduce itself. This applies to the human race as well. In the long-term, consequences of not enough reproduction could be extinction as we know it. However, more realistically, in the short term, it is essential for normal day-to-day and economic productivity. If there aren’t enough people around in your age group due to low reproduction, social relations become difficult, and so does communication. Economically, if there aren’t enough people participating in the market, then it will grow unstable. On an individual level, once a child is raised in a family, there will be an economic return in them providing for that individual later. This could be accomplished through direct interaction from child to parent, or from someone receiving benefits from someone else’s child from the Social Security Administration after retirement. That is the focus here. If we cannot successfully reproduce over the next generation, then there won’t be enough workers to attend to the retirees from the previous generation that rely on Social Security. This makes reproduction a need. Why it isn’t...
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