Pension fund

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,…

is right or wrong, and then there are also businesses that have their own values regarding policies they have as a company. Recently, the Washington Post had an article regarding a Pension Fund for surrounding U.S states that could cut funding for retired workers. As with every case, there are two sides, and each having their own facts and people who will be significantly impacted despite the results. Though, it is possible to have a legal action be unethical, and an ethical action be illegal. …

Facts Harry, a sheriff’s deputy, was injured on the job. He was allowed under his contract with the state to choose between $1,000 weekly sick-pay distributions or an $850 weekly workers’ compensation payment. Issue(s) Should Harry choose sick-pay or workers’ compensation based on the effects of income tax? Conclusions Harry’s best option is to select $850 weekly worker’s compensation payment, as such amount will be excluded from gross income. In comparation, the sick-pay distribution will be…

companies. Not only do they create funds, they also hold shares and are involved in the company. The role of the typical venture capitalist is usually hands on. They…

UK pension triple lock costs extra £6bn a year, says report A hastily buried official report has estimated that the government is spending an extra £6bn a year protecting pensioners' incomes, deVere Group understands. The report also warns that the cost of doing so in future years could spiral further. The warning came in a report from the Government Actuary's Department, which was published last week on the government website but was removed a day later; an official said it had been…

A pension plan is a type of retirement plan where an employer and/or employee makes contributions towards a pool of funds set aside for an employee’s future benefit. The funds are invested on the employee’s behalf, which allows the employee to have a steady income upon retirement (Sirkin, 2010). Pension plans in the United States can be traced back to 1875, when the American Express Company established the first private pension plan. As the years went by, the government legislatures passed a…

however, the two primary tax treatments for pensions are EET and TEE. The former system allows contributions and investment returns to be exempt from tax whilst retirement income is taxed. In contrast, the latter taxes contributions whilst returns and retirement income are tax-free. There are variations to the two main systems found across different jurisdictions. We will draw comparisons with the UK tax system across four geographic locations, namely; Australia, Denmark, Japan, and Portugal.…

permanent funds are classified as fiduciary funds. 2. In accounting for permanent funds only the income can be spent; the principal must be preserved intact. 3. Fiduciary funds focus on current financial resources and use a full accrual basis of accounting. 4. Fiduciary funds are excluded from the government-wide statements. 5. The concept of major versus nonmajor funds does not apply to fiduciary funds, as it does to governmental and proprietary funds. 6.…

Introduction and Background The Taxation of Pensions Act 2014 designed to allow flexible access to pension funds, commenced 6/04/15, meaning that a male age 65 with Defined Benefit (DB) and Occupational Money Purchase (OMP) pension scheme, could transfer into flexible-access drawdown (FAD) allowing unlimited withdrawals or purchase of a lifetime flexible annuity with all/part of transfer value. However, there are a number of factors involved, ensuring that client outcome is the right for…

In recent years, pensions are becoming a major public policy issue in most OECD countries.（衔接不上，应用数据） At the end of one’s working life, there is a common question among employees: how can I finance the days after my retirement? For most people, the answer is attending some type of pension so that they can pay their daily expense and keep their lives in a certain level. While there are numerous types of pension can be choice, e.g. unfunded schemes. Nevertheless, these various pension schemes have…