Pension Fund Ethical Dilemmas

The Central States Pension Fund has been faced with a major ethical issue in recent years. Due to the economic downturn in 2008, the Fund has lost a considerable amount of money, which effects the pensioners using this fund. Because of poor investments made during the recession the Fund is projected to be insolvent by 2025 if there is not a change made to the pensioner’s payments. The Fund must decide whether or not to cut the pension payments each month. The first option we have is to continue with the regular pension payments each month, but that would leave the Fund insolvent within the next ten years. The alternative is to cut the monthly pensioners payments by roughly 23% in order to extended the life of the Fund to thirty years. I think the most ethical decision for us to make is to cut the monthly payments in order to extend the life of the Fund and help the most people. The decision to cut monthly payments by 23% is the most ethical decision because it benefits the most people for the longest time. By cutting back on the pensioners monthly payments this will allow for the Fund to up to last thirty years. While this is the most ethical decision for the Fund, …show more content…
So, another framework that is important to be considered is individual rights. Unfortunately, when taking into account the individuals, pensioners, rights we were not able to justify our decision to cut the monthly payments. By cutting the pensioners monthly payments we are infringing on their individual rights. The pensioners have rights to their savings and their monthly payments from the Fund, since it is money that they have put into savings for once they have retired. Even though we were not able to justify our decision against their individual rights we believe that since we are trying to extend the life it may have a larger benefit than if they receive full payments