Define Benefit Plans Definition

Define Benefit Plans Definition
The defined benefit plans and defined contribution plans pay a pension to retired worker, usually
until his death or the death of the surviving spouse. The difference between the plans is the amount
of the pension that is calculated according to the performance of the pension fund. It is not set in
advance according to Defined Contribution plans. The employer has no obligation to bail out the
cash if actuarial deficit. Workers therefore cannot determine in advance with certainty their lifestyle
when retired based solely on their pension fund. Unlike Defined Contribution plans, defined benefit
plans are funded by contributions paid by the employer and the employee, which accumulate in a
pension fund and are invested to yield. Yields accumulated
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The Old Private Pension System
The old private pension system was created in the 1920's and expanded throughout the 30's and 40's
(McDonnell). Private pensions were considered one of the three income sources for retired elderly.
Originally, private pensions had defined benefits. The employer and employee would agree to a
percentage of salary that the employee would receive from the company annually during retirement.
Contractually obligated, this placed the liability onto the employer. Estimates say that employees
could receive around 40% of their last year's salary as annual income with defined benefits. In the
1990's, the pension plans gradually changed from defined benefits to defined contribution. The
employees, rather than negotiating retirement salary now determine the amount of their salary that
will be saved in a retirement fund. Retirement income is a burden on the employee rather than
employer (Ghilarducci 8). In order to equal the income of the old plans, employees give their
retirement savings to mutual funds that invest in the stock market. While a key aspect of retirement,
the system has evolved like most economic institutions, favoring the wealthy and established.
Furthermore, the private pension system contributes to a market bubble, putting money into the
stock market regardless of market strength. These two problems cause the modern pension system to
be flawed and unstable. The program must undergo drastic reform in order to save private pensions.
It is evident that the current pension

Pros And Roles Of Entrepreneurship
Entrepreneurship happens to be getting popular and fast rising to be the largest employer of labor in
many developed nation's economy. An entrepreneur is an individual who, rather than working as an
employee, runs the small business and assumes all the risks and rewards of a given business venture,
idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader
and innovator of new ideas and business processes. Entrepreneurs play a very important role to the
society. It is because the entrepreneurs and their activities are the critical determinant of the level of
success, prosperity, growth and opportunity in any economy. the most dynamic societies in Thailand
and in the world are the ones that have the most entrepreneurs plus the economic and legal structure
to encourage and motivate entrepreneurs to greater activities. Then Entrepreneur becomes one of the
most interesting occupation for more and more people especially for Gen Y(born between 1982and
1993) and Gen Z(born between 1994and2010) because they can use social networks as a new form
of communicating to their suppliers and customers. The improve of technology such as
communication technology is the most important reason to increase the number of self employed
business. Since Entrepreneurs don't have pension then it is their own responsibility to determine
what type of retirement plan suits their particular requirements. It can be a bit confusing because
there are plenty of

General Motors Company : The Automotive Industry
General Motors Company Billy Durant was a young man who worked as an itinerant salesman
while managing bowling alleys. While working as a salesman and managing bowling alleys Durant,
founded an organization that became the United States largest industrial company nationwide. In
1886, Durant launched a manufacturing horse–drawn carriage business and over the next several
years he invested lots of his own money in notable manufacturers such a Buick Motor Company. By
1908, Durant created General Motors Corporation after merging other automobile manufactures.
General Motors was known as the largest automobile maker throughout the world. However, by the
21st century the automotive industry was facing some tough competition from several competitors
(Knapp, 2015). After 77 years, proud and dominant General Motors was no longer known as the
number one automotive manufacture worldwide. One significant contributor to GM decline was the
company's pension and postretirement benefit expenses that drove up their cost of making cars
versus the cost of their foreign competitors. In 2009, right in the mist of the U.S. economic crisis
GM filed bankruptcy (Welch, 2009).Prior to filing bankruptcy critics suggested that GM
misrepresented their pension–related financial statements to conceal serious financial problems. In
2002, GM was facing falling stock market prices that drove down the value of their assets
surrounding their pension plans and increased the company's liabilities

Fiscal Control Boards And Its Effects On The Cities Under...
RESEARCH DESIGN
Model and hypothesis Fiscal control boards have different impacts on the cities under which they
function. My hypothesis is that the level of structural considerations such as citizen participation,
socioeconomic factors, and the legal framework taken into account in the board's policy making
procedures affect its level of effectiveness. These features of control boards are then used to analyze
Puerto Rico's case in terms of strengths and weaknesses in its potential success in addressing
structural problems in Puerto Rico's economy. In terms of comparing the cases, I will take three
variables: citizen input, consideration of legal structure, and socioeconomic factors when comparing
the policies that were passed and their outcomes. The data used will be provided by different official
documents and scholars analyzing cases of emergency financial measures and fiscal control boards
mentioned in the literature review. To test this relationship, I will perform a comparative case study
of Puerto Rico's fiscal control board with that of Washington D.C, and Detroit focusing on these
aspects. These examples allow me to investigate the factors involved in the policies introduced by
the boards under such different contexts. By choosing these cases, I am also able to control for
factors that other analysts consider imperative, such as the level of citizen input, socioeconomic
conditions, and legal structure. Regarding the level of citizen input, I will be examining the

Persuasive Essay On The Pension Crisis
Pension Crisis
When looking at for a governor that will contribute to a state's long–term success, one must look for
the candidate that is not promising quick, instant relief, as citizens will have to pay for it eventually.
In the gubernatorial debate, while both candidates are unable to fully answer the pension crisis
question, Kim Guadagno seems to have the best ideas for addressing the issue. Phil Murphy's take
on the issue is that he desires to fully fund pension obligations as fast as possible, as this will gain
the trust of New Jersey citizens back. This sounds great in theory, but it is important to look at how
he is going to do this; in the debate he is unable to explain his plan. Guadagno addresses the issue by
stating that in order to fix the problem, fifteen billion dollars of New Jersey's thirty–four billion
dollar budget will be required. This would mean budget cuts in almost all other areas of spending
such as education and transportation. While Phil Murphy's plan seems great, Guadagno quickly
makes it clear that it is nearly impossible to achieve. If Murphy were to achieve his goal, New
Jersey citizens would pay the price, and they would continue to pay the price for a long time.
Guadagno, while not clearly stating her plan, believes that it is best to address the issue with a
thoughtful, affordable approach. In conclusion, Murphy's plan might benefit certain citizens for a
brief period of time, but will hurt citizens in the long run, therefore, Kim Guadagno

Macau Pension Fund
Table of Contents Introduction 3
1.0 Introduction
Social Security Fund (SSF) was established on 23 March 1990 to provide basic social security for
the Macau residents. According to the Act 84/89/M, Social Security fund would provide subsidies or
assistance for unemployed, sick and retired people. This was the so–call "the first tier of social
security". At the same time, SSF was positioned as a financially independent fund under the local
government.
In Macau, Pension fund is included in the SSF, and there is no separation between the management
of pension fund and SSF. Instead, pension fund is considered as an expense from the aspect of
financial management. All the working people, including non–permanent and permanent ... Show
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During the financial crisis, there was even a negative return recorded in 2008. By ignoring year
2008, there is still a downward trend of the return.
According to the 2010 annual report of SSF, 72.43% of SSF balance was deposited into local bank,
the remaining proportion was entrusted to fund managing company for only low–risk investments.
Under the fix–rate hedging between MOP and HKD, the interest rate of Macau is close to interest
rate in Hong Kong, which is similar to US interest rate. Since the 2008 financial crisis, Fed has
applied the ultra low interest rate and the interest rate is believed to be maintained until 2014. So, a
72.43% of deposit in an investment portfolio is reasonably considered as inefficient.
3.4 Irregular government subsidies
In 2008 Macau government introduced the "Wealth Partaking Scheme". Each permanent resident
will receive the cash check issue by government and each non–permanent residents would received
60% of the partaking amount to permanent resident. The aim of the scheme is to share the result of
economic development under the high–inflation economy. However, in some people's view, the
scheme has been considered as supplement of social security and thus expected to transfer the
scheme into regular subsidies.
Beside the partaking scheme, Macau government established the "Central Saving Plan" – to inject
certain capital into individual account of all the permanent attained the age of 22 in the year. The

Pension Reform Case Study
The Rhode Island Pension Reform Background There are over a million residents living in Rhode
Island between the ages of 21 to 65. The majority of the Rhode Island population is not employed
by the state nor does an individual concern oneself with state issues (Randazzo, 2013). The
Employee Retirement System of Rhode Island (ERSRI) was originated to cover state employees and
teacher's retirement, disability, survivor, and death benefits (Randazzo, 2013). In 1987 and 1989, the
State Police Retirement Benefits Trust and the Judicial Retirement Benefits Trust were established
(Randazzo, 2013). All pension plans in Rhode Island are managed by the state and the funds are
commingled for investment purposes in determining the actuarial value ... Show more content on
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The twelve–member board consisted of 2 Community Business Representatives, 5 Union Officials,
3 researchers, Rhode Island Department of Administration director and the Mayor of Cranston
(Randazzo, 2013). The Advisory Board purpose was to gather information and generate a report for
the General Assembly special hearing (Randazzo, 2013). The board met consistently for two months
to review solutions to the pension crisis and actively listen to the public, pensioners, and state
workers for feedback on ways to resolve the ERSRI problems (Randazzo, 2013). All meetings were
publicized for transparency and board members used the opportunity to educate the public on the
new retirement reform bill through radio and television broadcasts (Randazzo, 2013). EngageRI, a
nonprofit organization was invited to join the board to assist with implementing an all–inclusive
pension reform resolution and advocate to the General Assembly (Randazzo, 2013). The combined
house and Senate Finance Committee held four meetings that included 30 hours of public testimony
(Randazzo, 2013). Enough information was collected to recommend the current retirement reform
bill. Governor Chafee and Treasurer Raimondo introduced legislation of the new retirement bill to
the house and the Senate. The changes are (Randazzo, 2013): How the

Social Insecurity Essay
As the saying goes, saving money for rainy days, in other word preserve the summer harvest so
there is food to eat in the long winter months. There is something naturally human about our need
for security to have something on hand just in case. In 1935 the social security act was born from
just such a need, when American was in crisis, so now with the current projections pointing to the
crisis in social security, experts believe that by 2037, the social security trust fund will be exhausted.
The birth of the social security program started as a measurement to implement "social insurance"
during the great depression of the 1930s, when the New York stock exchange crash in 1929 America
then slipped into economic depression with unemployment ... Show more content on
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In order to contradict the projected social security crises, many recommended that social security be
privatized, in whole or in part. If privatization takes place, social security will act as a private
pension fund, people will contribute to the fund during their working years, it is said that the funds
will be invested in public stock and the bond's markets, which have higher returns than government
debt, once retire, the former workers will receive the proceeds from their fund.
Followers of the current system point to two major problems with the proposed system. First if there
is a significant downturn in the public securities markets, retirees will not attain the expected return
on their investment. In such a case, the government would unquestionably be forced to make up the
difference through higher taxes. Secondly, since no funds currently exist, private or public, the
government will need to finance both payments to current retirees and the funds for current workers
through taxes on Americans currently working, likely meaning drastically taxes in the near future.
In 1950s there was a shortcoming with the social security program so an amendment was enacted,
so the amendment increased benefits for existing

Sears Canada Pension Crisis
The Sears Canada situation has put the former and current employees at the risk of not getting their
full pensions and other benefits paid as promised by the company. This problem was raised due to
the underfunding of the pension plan by the company. this deficit has but over 16,000 former and
current Sears Canada employees at risk of not getting their full pensions. (MacDonald, 2017) This is
due to the pensioner not having any priority's when a company goes through their bankruptcy
process. In order to help those who are affected by this, the government should take actions towards
protecting and preserving the pension of the employees. The help of the government would help
reduce other problems that will arise due to employees not getting their full pension. Such problems
that would arise are; the burden on taxpayers to pay for the loss of the employees and how it is
unfair and unethical for the employees to suffer from the company's faults. The Sears Canada
bankruptcy has been put many former and current employees at the risk of not getting all of their
pensions and benefits as promised by the company after their retirement. This can become a
problem to taxpayers because ... Show more content on Helpwriting.net ...
The government should put laws in place where it can help those who are in a defined benefit plans
get their full pension and benefits when a company is going through bankruptcy. These laws can
help protect employees from losing some or all of their pensions. Therefore, the government should
take measures on protecting and preserving the pension of employees who are on the verge of losing
some or all of their pension due to the company going through bankruptcy. This is currently
happening to the former and current employees of Sears Canada, who are on the verge of losing
some of their

Role Of Global Macro Strategy On A Defined Benefit Pension...
Article: CFA Society Toronto – The Analyst Writer – Irfan Chaudhry – Portfolio Manager TAHO
Capital The Role of Global Macro Strategy in a Defined Benefit Pension Portfolio In the last five
years, the funded status of an average Canadian pension fund improved from 65% to almost 90%
because of one of the longest stock market rallies and interest rate stabilization. Pension plans still
remain largely exposed to the significant and unpredictable volatility of interest rates and market
risk as shown in the drop in interest rates in 2013/2014 and the stock market correction in 2011. It is
urgent for pension funds to mitigate these risks in a maturing market. Interest rate risk can be
mitigated by increasing fixed income allocation, cash flow immunization, a derivative strategy
based on taking an interest rate view for which they are not qualified, changing plan structure which
may result in a lower payoff to pensioners or higher contributions from plan sponsors or by
transferring portions of liabilities to an insurance company through an annuity transaction. A going
concern pension plan will require the returns enhancement even after the implementation of some of
these risk mitigation measures because of un–modeled liabilities and uncertain assumptions. Even
bigger is the market risk as correlation of asset classes in a multi–asset pension fund portfolio turns
to one at the time of crisis. This undercuts diversification as portfolio construction logic. The
pension funds

Pension Policy Research Paper
Pension problems are unfortunately becoming the new norm for American workers. In Dallas, the
fund for retired firefighters and police officers is underfunded by $5 billion. [1] After hearing that
the fund would be empty within the next 20 years, retirees pulled out $230 million in just six weeks.
Across the nation, the average home has a pension debt of $19,000 for public pensions.
The pension problem is not confined to just Dallas. In Los Angeles, public employee pensions have
led to significant debt. The city's three retirement systems have a combined debt of $15 billion. [2]
The city has added $2 billion to the system over the last two years, but the fund is still only 78
percent full. Increased retirement expenses and overly optimistic ... Show more content on
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Workers are able to save a portion of their paychecks before taxes are withdrawn, so the income is
able to grow untaxed until it is needed. The money invested is controlled by the employee, but there
are restrictions to this investment vehicle. Most 401(k) plans do not allow workers to use the
employer's contributions immediately, and there are often charges for withdrawing funds early. [6]
Workers tend to like 401(k) plans however because the contributions can be matched by the
employer by up to 3 percent of the employee's

Tax Pensions : A Solution To The Public Pension Crisis
future income versus need. As stated earlier, poor returns on investments is a major contributing
factor to the current deficit. By restricting state employees, including teachers, from receiving dual
retirement from the state, the overall state retirement system would no doubt see a gain in revenue.
The effects of the dual retirement restrictions may not be felt immediately, but will certainly offer a
long–term benefit. The impact of the state–wide tax increase will be felt within one year of being
implemented. Senator Chris McDaniel states in Tom Loftus, (2017) article that, "it's going to be
about 10 percent tax increase for all Kentuckians . . . " (pg. 2) which would pay off the current
deficit. However, he does not offer a time ... Show more content on Helpwriting.net ...
According to David Williams in his article, "Kentucky faces a financial storm unless it reforms
pension system," "These three factors –enriching benefits, underfunding and poor investment returns
– have created an unsustainable system for both state employees and taxpayers." (2007, pg.1) One
must agree with David Williams that enriching benefits is a key component in the preservation of
the education system. If unresolved, this issue will affect every single Kentucky resident in some
way, shape, form, or fashion; whether it be directly or indirectly. Hence why every single Kentucky
resident must make their contribution via taxes toward the resolution of this deficit.
Without seasoned teachers and administrators, the very fabric of the education system will grow
weak. This issue will undoubtable affect the performance of every student in a public–school system
in Kentucky. These students will be future educators, taxpayers, and lawmakers. This deficit is not
going to go away without change and funding. However, the proposed legislation is not the answer.
This issue must be resolved through bi–partisan efforts through state wide tax increases by
restricting state employees from receiving dual retirement and insuring the current benefits of
seasoned educators. The residents of Kentucky and the legislative body owe prompt attention to this
matter on behalf of every student enrolled in a Kentucky public school.
Annotated Bibliography

Swot on Japan Essays
Japan SWOT Analysis
Strengths:
Economy– Economy has a long term positive impact on Japan, which will add to its value. The
qualitative factor of economy will lead to a decrease in costs for Japan
Japanese Biotechology–
Hard working People–
Sophisticated consumers with high purchasing power– They help Japan set trends and utilize latest
technology. These customers tend to appreciate fashionable, name brand items that allow luxury
goods makers to use their profits and knowledge of the Japanese consumer market to expand
globally. Technology companies sell high tech and high priced goods to Japanese customers, which
allows the entire country to utilize the latest technology. technology has a major correlation with
productivity, ... Show more content on Helpwriting.net ...
Initially, the labor participation rates (which are low in many countries) can also be increased to
temporarily reduce or delay the shortage. On the positive side, such a shortage increases the demand
for labor, which can potentially result in a reduced unemployment rate as well as higher wages. As
the birthrate in developed countries drops well below the "replacement rate" of 2.1 children born to
every woman, to somewhere between 1.1 and 1.4 children – the declining population will have
severe consequences in the near and distant future. Demographic decline causes anxiety because it is
thought to go hand–in–hand with economic decline. With fewer, younger workers to pay the health
and pension bills of an elderly population, states face an unprecedented fiscal burden. The
dependency ratio of those aged 65 and over to those of working age looks set to double from one–
to–four to one–to–two in 2050."
Natural Disasters–
Female Managers in Japan– Only 8% of managers are female in Japan, whereas, they are 40% in
America and 20% in China. This difference in female participation means Japan is only getting their
ideas from men. The loss of creative ideas is a debilitation consequence of low female participation.

Lost Cost of Capital in Japan–Japan's reliance on low cost of capital is hurting their economy.
Japan's government institutions hand out money to try and revitalize ailing companies. These low

The Rising And Current Crisis Of The United States
For this case study the focus will be shined upon the rising and current crisis and panic in the United
States over the two main risks that are associated with retirement. Those two issues are "The first is
the possibility that the individual may have accumulated insufficient assets by the time he or she
reaches retirement age. The second is the possibility that the individual may outlive the assets that
he or she has accumulated (334)". In the event that an individual has accumulated a sufficient
amount of assets to provide an adequate standard of living after retirement, the risk of uncertainty
concerning the life expectancy is still relevant and a potential issue regarding the share of the
accumulation that should be properly consumed ... Show more content on Helpwriting.net ...
Not the majority but a large percentage of the population are neglectful or not able to save for
retirement, "according to a recently released household survey conducted by the Board of Governors
of the Federal Reserve System, as of 2013, approximately 31 percent of Americans reported having
zero retirement savings and lacking a defined–benefit, or DB, pension(miller)". In that same study it
highlights that more than have of 18–29 year old population possess no retirement savings or
pensions, which is alarming. However, about 35% of private sector workers don't even have access
to workers retirement pans, and only about 50 % of the population who do have access, actually
choose to accept or acknowledge the options. Moreover traditional defined benefit pension plans are
not as popular, therefore, the importance of more workers saving funds through defined contribution
pension plans such as 401 (k) s or IRA's. Knowing this rises obvious concern to why a majority of
the population still don't have anywhere near the sufficient amount of funds in these accounts to
support one's lifestyle, " As of 2013, the median retirement account balance among all households
ages 55 to 64 was only $14,500. Even after excluding all households that had saved nothing, the
median account balance of near–retirement households was still

The City Of Houston 's Pension Crisis
The City of Houston's Pension Crisis 1 From: Ervin Jackson III To: Dr. Sarmistha Rina Majumdar
PAD 710: Capstone (CRN 21270) Subject: Part II Capstone Paper April 17, 2017 The City of
Houston's Pension Crisis Literature Review Every Houston city worker who works hard and play by
the standards deserves a impartial and protected retirement. Yet the city administration has mess–up
Houston's pension systems for years, leaving them underfunded and on unstable ground. Political
leaders have cut corners on pension payments, used dicey investment return assumptions, and
disregard the warning signs ... Show more content on Helpwriting.net ...
They continued to deficiency employees declining to make responsible pension payment. That
combined with the national financial downfall, causes Chicago's pension debt to balloon into a full
blown financial crunch. The difficulties in Chicago have only gotten worse; even as the city's long–
range economy has become better. In Houston, the city's healthy economic position has helped to
pad the punch of substandard pension funding decision thus far, but surroundings are changing. The
decrease in the oil markets along with the property tax revenue cap could quickly enlarge the city's
pension predicament and outcome in much like the one in Chicago. In order to stay from dire
consequences, leaders must immediately take action to fundamentally reform Houston's pension
systems so that they are impartial and maintainable for both employees and taxpayers. City official
must access local management over the city's pension systems in order to negotiate changes directly
with workers and enact those changes locally. In addition, they must fully fund the pension system
pay off the debt in 20 years or less; and make the projections, historical data and financial news
publicly available. Retirement plans for public workers in the U.S of America face serious
challenges. These pension plans are greater extent expensively, underfunded, and retention of the
most talented public servants and create

Europe 's Gender Pay Gap And The Factors Affecting The Gap
Europe's gender pay gap and the factors affecting the gap
Europe has a significantly wide gender wage gap. In the broader sense, women are paid an average
of 16% less per hour than men in European countries. As a result of this wage gap, women earn
much less than men over their lifetimes. This causes for lower pensions as well as a risk for poverty
once a woman reaches old age. In 2012 alone, 21.7% of women aged 65 and over were at a high risk
for poverty due to their pay. This is significantly less than the 16.3% of men aged 65 and over who
were at a high risk for poverty (EU Commission, 2014, p. 2). One of the reasons for this difference
in pay is due to the employment rate in Europe. Looking at European employees aged 20–64, the
employment rate for women is 62.3% and for men is 75%. The main reason for this is due to the fact
that a majority of women are part–time employees– 31% of women in Europe work part–time in
comparison the only 9% of men. As a result, women are less likely to work full–time, higher paying
jobs that will allow for them to earn rights for pension, health benefits, and so much more (EU
Commission, 2014, p. 2). Discrimination is an additional factor that leads to the gender pay gap. Per
Beckerian Discrimination, discrimination is defined as ""the valuation in the marketplace of
personal characteristics of the worker that are unrelated to worker productivity" (Wikipedia).
Personal characteristics include physical features such as one's race or sex,

Europe's Aging Population : Europe
Europe's Aging Population
Europe provides a well–documented example of a developed region experiencing an aging
population. Carone et al. (2005) say that over the coming decades, the number of people aged 65
and over in the EU is predicted to double, as a result the old age dependency ratio will change to
2:1, meaning that for every two people of working age there will be one aged 65 or older. The scale
of the aging population is compounded by the region's low fertility, with member states averaging
1.5 children per childbearing woman in 2004, well below the replacement rate. Carone, et al. (2005)
point out that there are cultural and structural reasons for this, including high usage of birth control;
higher female education attainment and ... Show more content on Helpwriting.net ...
Over the last 10–15 years, this has become an issue as Europe's elderly population has grown
substantially. In 2014, the over 65's accounted for 18.5% of a 506.8 million EU total (Eurostat,
2015). In 1960, the share of the population aged over 80 was only 1.5%, however, it had risen to
nearly 5% by 2010 (OECD, 2013).
Inward migration is put forward as a potential solution to filling the labour deficit left by aging
populations. For the EU, proposals for a quota of migrants adjusted for each member state's
circumstances could help alleviate the challenges of an ageing population (Ellyatt, 2015). Through
bringing in migrants of working age, Denton and Spenser (2014) suggest that gross domestic
product (GDP) will increase; they note additionally that bringing in families will help boost fertility
rates and therefore mitigate the challenges of an aging population over time. However, these
proposals have been met with criticism. Despite being dated, Coleman (2000 and 2001) said that
encouraging migration is only a short term fix. In order to ease the issues of population aging, the
rates of immigration would have to be so high that the cultural, social and political side effects of
altering the composition of the host population would outweigh any potential benefits. For example,
it is noted by Kassam, et al. (2015) that Germany would need an average of 533,000 imigrants every
year to offset its shortage of workers. The likely

Pension Funds and Pension Crisis
Pension Funds and the Pension Crisis Introduction Pension funds are any plans, funds or schemes
which provide retirement income. These funds are important to shareholders of listed and private
companies and they are particularly important to the stock market which is dominated by large
institutional investors. This essay discusses the idea of pension funds and the pension crises. It
defines the issues of pension funds, talks about the various pensions, categorizes them, and
discusses the pension crisis and its implications to the US in particular and to the world in general.
Pension Funds Pension funds are any plans, funds or schemes which provide retirement income. The
money in them varies from some offering very little making it not worthwhile for their holder to
retires, whilst others pay more than the employee has earned in his lifetime. Examples of the former
are the present–day crisis with Chicago teachers who have found that their pension is giving them as
little as 42,000 per year ((NYT Times (September 19, 2012) Next School Crisis for Chicago:
Pension Fund Is Running Dry). Examples with the latter are the absurd instances of Yonkers, where
policemen in their 40s are retiring on $100,000 pensions (more than their top salaries), or in
California, where payments to Calipers, the biggest state pension fund, soared while financing for
higher education was cut (ibid). The largest 300 pension funds collectively hold about $6 trillion in
assets (Global Investment

The City Of Houston 's Pension Crisis
The City of Houston's Pension Crisis The City of Houston's Pension Crisis 2 Introduction The City
of Houston pension systems are at a crossroads. The recession has brought pension funding practices
into the bureaucratic limelight due to the proliferating scrutiny and tightening of the local finances.
Pension reform has been spurred by ballooning cost projections and an estimate $2.7 trillion
nationwide funding gap (Johnson, Chingos & Whitehurst, 2013). Reforming the insufficient pension
system has suggested for most citizens from taxpayers who want to reduce the expense down and
yet still receive a great quality of firefighters, police officer, and public services who want to
preserve their retirement security. The recent Detroit bankruptcy ruling has left a sobering precedent
that pension promises are not sacrosanct, but could possibly renege on if a local government falls
too far behind its funding obligations (Bomey 2013). The wide ranges of public sector pensions are
considering benefit plans. In these kind of plan, when an employee reaches a specified age or years
of service, he or she in entitled to a set amount of benefits each year from retirement until decease.
The benefit amount of a retiree

Questions On Fixed Income Securities
To properly analyze fixed–income securities, we established six major factors to consider. First is
the security's depth of the market. Have there been significant changes in the market since the
financial crisis? The second factor is the main players in the market. This includes issuers and
buyers of the financial instrument along with any other servicing institutions. The third reason, the
purpose of the investment. Fourth is the current condition of the financial instrument's secondary
market. How active is it? Are there transaction costs? How are the instruments priced? The fifth
factor is the risks in the investments. Last but not least is the sixth reason which is the financial
instrument's valuation. How should intrinsic value be ... Show more content on Helpwriting.net ...
GICs are not traded and nontransferable without the explicit written consent of the issuer. There are
two basic types of GICs issued. The first is "participating" GICs which involve investors to receive a
variable rate of return. Thus they are literally "participating" in the risks and rewards resulting from
the fluctuations in the interest rate. When interest rates are expected to rise in the future,
"participating" GICs become attractive to benefit from the expected rise in the interest rate.
Different from "participating", "nonparticipating" GICs offer a fixed rate of return. This makes
"nonparticipating" GICs more attractive when market interest rates are high to lock in the high fixed
rate of return for the life of the investment contract. The change in the market for guaranteed
investment contracts since the financial crisis continues to be mixed. GICs have become as popular
as other investments like stocks and bonds. With the rising of interest rates and decreasing concerns
about the credit merit of the insurance companies issuing the contracts, traditional GICs have had a
steady growth within the last decade. The total amount of new GIC business done in 1982 was about
$8 billion. Today, the annual figure is somewhere between $35 and $40 billion Guaranteed
Investment Contracts are marketed by insurance companies, which are considered nonbank financial
institutions. They are usually Collective Investment

Development of the Industry
This presence cannot be ignored and has led to the development of the industry. With new
regulations being introduced, such as FoFA, threaten the same earnings as before but experts
believe, from our interviews, will bring in large volumes of business to the industry. The industry
would soon need to adjust to the newer conditions but is expected to develop around it given the
opportunity the wealth pool has to offer.
Further, the sophistication of the industry can be seen by the existence of over 200 Boutique
Investment firms who provide expertise to their niche investors. There is an expectation of
consolidation of these firms in view of the recent changes about slim margins but the market has
seen disruptive firms booming without any old heritage and running successfully. More than 23 of
Australian Investment firms are identified to be the World's Top 500 largest firms. The existence
alone highlights the growth potential of the industry and the future of the industry.
3. Literature Review
The future of the wealth management industry in Australia depends on the reasons that are leading
to the growth of the industry such as superannuation pool, regulatory changes, digitalization, etc.
There are also some challenges faced by the industry due to rising rates, higher contribution to
superannuation, etc which hold back the development and with respect to that, policy makers have
been making recommendations and suggestions which we look into to make a conclusion.
So

The Great Debate : Privatizing Social Security
The Great Debate: Privatizing Social Security The United States' Social Security system was
implemented by Franklin D. Roosevelt on August 14, 1935 as a part of the New Deal during the
Great Depression "to frame a law which gives some measure of protection to the average citizen and
his family against the loss of a job and against poverty–ridden old age." Although the system has
proven to be one of the most popular programs ever established, its future has been questionable for
some time. According to the Social Security Administration (2008), "People are living longer, the
first baby boomers are nearing retirement, and the birth rate is lower than in the past. The result is
that the worker–to–beneficiary ratio has fallen from 16.5–to–1 in 1950 to 3.3–to–1 today. Within 40
years it will be 2–to–1. At this ratio there will not be enough workers to pay scheduled benefits at
current tax rates" (Social Security Administration [SSA], 2008). This issue concerns many citizens,
especially younger generations, and continues to be a hot topic of debate amongst politicians. Many
ideas have been proposed about how to reform the current system. The most popular of these ideas
is to create an entirely new system consisting of mandatory pension accounts which would allow
individuals to accumulate a balance over time with investment options such as stocks, bonds, or
mutual funds. This argument will show why Social Security should not be replaced by a mandatory
private pension system.

Finding The Savings Projects For Young People 's Current...
Background Introduction This article aims to discover the savings projects that best appeal to young
people in current economic environment. UN (2015) declares that the worldwide labour market
circumstances persist challenging and the general situation is further complicated. In Europe,
tension situation of Ukraine causes an unfavourable effect on economic recovery activities and
confidences, which makes the reconstruction of euro region remain risky and unstable. On the other
hand, employment rate decreased sharply after the financial crisis and job creation is extremely
insufficient. Moreover, youth unemployment rates keep relatively high in European countries, such
as, 53% in Spain, 44% in Italy and 35% in Portugal (World Economic ... Show more content on
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According to Berry (2011)'s report, the UK government developed the National Employment
Savings Trust (NEST) and automatically enrol workers into pension scheme, which is already
leading some young workers to a long–term savings track. Furthermore, Tipper (2014) believes that
Generation Y can resonate with tenable investment approaches if savings sector could build user
reliance in investing by adopting auto–enrolment programme. Networking This research proposal
uses Delphi technique to refine the research topic area. It is about forming a group of individuals
who are related to or concerned about the research area to develop a more particular research idea
(Saunders et al., 2006). I explained to three relevant course lecturers that my research idea was
involved with helping young people use financial products to save and plan for their future. And we
generated a few specific ideas, such as: the economic aspects that required young people to start
saving; the features that young people look for in savings projects; roles of governments and savings
sector in developing preferable savings projects. After discussion, I refined my research idea to:
what savings projects best appeal to young people in current economic climate. Literature Review In
recent years, savings in pension is always the major savings project appeal to

The Differences Between The And The British Welfare State
Welfare state in a country is essential for the economic and social well–being of their citizen, this is
also historically a very important achievement for the inhabitant who are supported in case of need.
Welfare state is different in every nation and there are four models in Europe: the Nordic model, the
Continental model, the Anglo–Saxon model and the Mediterranean model. Because of these
differences it would be interesting to make a contrast between two of them, as among the Italian
Welfare state and the British welfare state, in order to understand the weaknesses and strengths of
both the systems.
The Mediterranean model includes the Italian welfare state, in which the ideal of family has a
central role, in facts it is the main resort of this system. Family has the responsibility of children and
elderly people and the state has only a marginal function, which is assist them in doing this task. The
six main pillars of this system are the health care, the social security, the education, the housing, the
unemployment and the pension.
On the other hand, there is the Anglo Saxon Model, which main purpose is the prevention of poverty
and social exclusion. This model was built upon the proposal of Lord Beveridge, who in 1942
declared that there were "five giants on the road to reconstruction", those were poverty, disease,
ignorance, squalor and idleness. After World War II Beveridge proposed an idea of welfare state,
which was based on social security, National Health

unit 20 p3 level 2 business
Describe financial products and services appropriate to self.
Features:
Although there are many types of financial product, there are a few features that are common to
several of them.
Borrowing– several products enable customers to borrow money these include loans from banks and
finance companies, overdrafts, credit cards and mortgages. All loans have specific requirements
such as interest to be paid and a timescale to repay the amount borrowed.
Saving/ investing – this is where money is deposited in an account and is available for later
withdrawal. Normally interest is paid
Risk – some type of savings, such as company shares, involve the risk that some or even all of the
money invested could be lost.
Current accounts: ... Show more content on Helpwriting.net ...
This means that after this period you will have to pay your monthly mortgage repayments yourself.
Credit and store cards – it generally pays off a percentage of your outstanding balance or the
minimum payment each month for up to a year. Check which option is being offered. This means
that you may still have to pay any balance left after this time. The insurance typically only provides
cover for the amount you owe when you make a claim, and not any balance you build up after this.
Loans – it covers your monthly repayments for the loan, generally for 12 or 24 months. After this
period you will have to pay your monthly loan repayments yourself.
If the insurance for any of these products contains life insurance, then the cover will generally pay
off the balance of the debt covered if you die. If the claim is for disability, the monthly repayments
may be paid to the end of the life of the loan.
You should read the key policy information that comes with any policy you take out. This sets out,
amongst other things, the main features and benefits of the policy as well as any significant or
unusual exclusions and how long the cover lasts. If unclear ask the salesperson to go through it with
you and make sure you 're happy before you take it out.
Life assurance:
There is an important difference between life insurance and life assurance. In the case of life
insurance, in return for a premium the insurer will pay an agreed amount if the insured person dies
within

Benefits Of A Pension Plan
their pension plan will be there for them when they retire (5). In terms of reform the following
factors can help to make DB plans more attractive again: Risk shared plan where the cost is
explicitly shared between participants and sponsors; Target benefit plan (TBP) where accrued
benefits can be increased or decreased according to experience, and Plans where indexation of
pensions is conditional (Bakvis and Skogstad 2008, 144). The second tier consists of the CPP and
QPP, which is an earnings–related program for the employed and self–employed that provides
retirement, disability, and survivor benefits as well as benefits for children of deceased and disabled
contributors (Pierlot 2008, 3). The plans provide a retirement benefit of 25 ... Show more content on
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This matter is not discussed in this paper. In general any reform to the CPP is meant to apply to both
the QPP and CPP. The context in which the CPP/QPP operates refers to as joint–decision federalism;
although made for the purpose of mutual negotiation, it is harder to reach agreements over important
matters in the CPP (Bakvis and Skogstad 2008, 143). The federal government and the provinces
jointly administer the CPP whereas the OAS works within the domain of only federal jurisdiction
(Beland and Myles 2012, S78). First, any changes to the CPP must have the consent of two–thirds of
the provinces having two–thirds of the population, which implies that any four provinces can, in
concert, block a change to the CPP (Dyck 1986, 55). Second, the federal government has the
authority to block any change that it disapproves (55). These rules create a system where multiple
vetoes can overpower changes to the CPP. This makes it difficult to reach a common consensus on
urgent issues and reform, since there is a diverse range of governments with different ideologies and
viewpoints (Bakvis and Skogstad 2008, 144). The requirement that assenting provinces represent
two–thirds of the population gives a special veto to the larger provinces. Ontario has a veto in its
own right, and will continue to retain that power as long as more than one–third of the population
continues to reside within its borders (Dyck 1986, 55) In addition; Quebec is included in

Benefits And Benefits Of Pension Pensions
Pension, a regular payment made during a person's retirement from an investment fund to which that
person or their employer has contributed to during their working life. After retirement a retiree
depends one their pension as a source of income. Hundreds of thousands of Americans who have
spent their lives working hard to support themselves and or their families for years have gotten their
pensions either cut or completely taken away. There are a variety of negative effects for pension
recipients when pension plans given by employers go broke or pensions are cut entirely and why it
is crucial for employers to follow through with their promises of a wholesome pension. These
negative effects range from retirees' lack of or no medical care, ... Show more content on
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Over twenty thousand of these pension recipients are retired fire fighters, police officers, and many
other public servants who spent years of their lives helping the city and did not pay into Social
Security. Many retirees like Mr. Larry Newberry, a retired firefighter said, "I put my money into our
pension fund and was promised it would be there by law when I retired. I sucked up smoke and put
my life on the line every day I went to work and have the injuries to prove it. The least the
government can do is stand by Michigan law." [The State of Michigan Constitution states that public
pensions "shall not be diminished or impaired."] Potentially having to move out of his home to a
trailer Newberry says that he does not need the money for himself but for his seven grandchild who
he wanted to help pay for college. All he wanted was just to help put his seven grandchildren
through college but now he cannot with the deep pension cuts. Now retired U.S. Bankruptcy
Judge Steven W. Rhodes, the presider over Detroit's bankruptcy says he feels "deeply concerned"
about the unfunded pension liabilities. Rhodes has even said that Detroit and many other cities need
to consider transitioning employees to 401k retirement plans. Though he ruled that municipal
pensions are protected by the state constitution but are still vulnerable

Social Security And The Welfare System
In as early as 2012 it is estimated there will only be two workers paying taxes for every one
recipient of Social Security benefits. At that time the surpluses generated each year will cease, and
Social Security will begin to run a deficit (paying out more than it takes in). The government will
then have to begin paying back the money borrowed from the trusts, plus interest. Since no money
has been saved for this purpose, the government will be forced to increase the national debt, cut
spending, or raise taxes. "Even worse, unless something is done, the entire Social Security system
will use up its government IOUs and go bankrupt by 2037" (www.socialsecurityreform.org). We've
known about the approaching Social Security troubles for some time now. Numerous plans of
reform have been proposed by Senators Gregg, Moynihan, Kerrey, Representatives Porter, Sanford,
Smith, and the Federal Reserve Bank of Cleveland, State Street Bank, the CATO Institute, National
Taxpayers Union Foundation, and the Center for Strategic & International Studies, and the Advisory
Council of Social Security. Due to politics, no president has touched the issue. Even though we've
known about the problems in Social Security, no president has ever attempted reform as it isn't a
current problem. Therefore it has never been a priority for those needing votes to stay in office. Now
that we are as close as seven years to recalling the IOUs, the issue is rapidly progressing into a
crisis. Even if we found a

Baby Boomer Research Paper
Immigration, Baby Boomers, and U.S. Economic Policy in 21st Century
Michael Lowrey
West Chester University of Pennsylvania
In an effort to explore the interaction between U.S. Immigration Policy, Social Security, and their
political impacts, the following scholarly sources were examined. Specifically, the "Baby Boomer"
generation is retiring in much larger numbers and exercise both economic and political power. The
following articles are current (1995) and provide a sample of the varied literature and
interdisciplinary analysis available on the topic.
Borjas, G. (1995). The Economic Benefits from Immigration. The Journal of Economic
Perspectives, 9(2), 3–22. Retrieved from http://www.jstor.org/stable/2138164
Economics Professor ... Show more content on Helpwriting.net ...
(2008). Aging baby boomers and the effect of immigration: Rediscovering the intergenerational
social contract. Generations, 32(4), 18.
Myers presents a method where ODR is redefined as a Senior Ratio (SR) where only those from
ages 25 to 64 are involved in workforce replenishment calculation forecasts. Specifically, the spike
in Baby Boomer retirement is proposed as a destabilizing challenge due to generational housing
market incongruence. Often a primary asset, the value of Baby Boomer real estate stock becomes a
core economic indicator. Immigration policy, economic data, and the weight of public rhetoric are
identified and offered as disparate sources providing a solution to forecasted budgetary shortfalls.
Kotkin, J., & Ozuna, E. (2012). AMERICA'S DEMOGRAPHIC FUTURE. Cato Journal, 32(1), 55–
69. Retrieved from http://proxy–wcupa.klnpa.org/login? url=http://search.proquest.com.proxy–
wcupa.klnpa.org/docview/

Variable Measurement, Sampling Selection, And Empirical...
3. Variable measurement, sample selection, and empirical design
3.1. Variable measurement and sample selection
Before the Securities and Exchange Commission (SEC) reformed the executive compensation
disclosure requirements regarding inside debt in 2006, it is very difficult to find out information
related to the deferred compensation. Therefore, following Sundaram and Yermack (2007), the data
set used in this paper for the period before 2006 consists of the pension data only, and ignores the
minority of the cases for which deferred compensation data are available. Sundaram and Yermack
(2007) calculate the actuarial present values of each CEO's pension at the end of each fiscal year.
They calculated the actuarial present value of a CEO's pension by using the following formula –
∑_(n=max⁡
(0,R–A))^(K–A)▒p(n)X/〖(1+d)〗^n
Where X is the annual pension amount, R is the minimum retirement age, A is the CEO's current
age, p(n) is the probability that the CEO is alive n years in the future, collected separately for male
and female CEOs from the actuarial tables published by the U.S Social Security Administration, d is
the cost of long term debt, and K is the terminal year of the pension (maximum is set 120).
Collecting pension data following the above procedure is time consuming. It involves checking each
company's proxy statement, and identifying the disclosed annual pension payments in matrix form,
as required by the SEC.
I collect the observations from 2007 to 2013 from Standard

Pros And Cons Of Minimum Wage
COMPENSATION PACKAGES
Minimum Wage A minimum wage is the lowest remuneration that employers can legally pay their
workers. Equivalently, it is the price floor below which workers may not sell their labor. Although
minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the
benefits and drawbacks of a minimum wage. Supporters of the minimum wage say it increases the
standard of living of workers, reduces poverty, reduces inequality, and boosts morale. In contrast,
opponents of the minimum wage say it increases poverty, increases unemployment – particularly
among unskilled or inexperienced workers and is damaging to businesses, because excessively high
minimum wages require businesses to raise the prices of their product or service to accommodate
the extra expense of paying a higher wage. In the US, wages for almost all workers are set either by
market forces or by collective bargaining. The body referred to as Fair Labor Standards Act
determines the minimum wage that is abided by all states. As per the 2015 data, the minimum wage
per hour is 7.25 USD. However, this is not the case with the fourteen states and some cities with
their own minimum wage at federal level. For instance, in Florida the minimum wage per hour is
8.10 USD and in California its 10.50 USD per hour. In Greenland the minimum wage for both
private and public sector is 20 USD per hour, not official. The pay rates are set through collective
bargain agreements regardless

The Functions Of Financial Institutions Within A Financial...
Discuss the functions of financial institutions within a financial system and give examples of
financial services and products that are traded by these institutions.
A financial institution is something that has been established that contains financial trades for
example investments, getting a loan or putting a deposit (ABP, 2001). Financial institutions get dealt
with on day to day so almost everyone deals with it. Majority of the depositing, borrowing money,
exchanging money contains and must be done through financial institutions.
The functions in financial system contains:
Investment Banks
Commercial banks
Insurance Companies
Investments companies
One of the functions of the financial institutions is Commercial Banks. Commercial banks will
accept deposits and provide very good security and make it suitable for their customers. This is just
a normal role for the bank to give their customers money safe so that their customers don't have to
physically keep their belonging in their home or on them (APB, 2001). With having commercial
banks there is no need to keep large amount of money in hand because the banks can handle it such
as online banking, checks, debit card or credit card.
Another one is insurance companies, insurance companies protect themselves or their properties
such as your phone, your vehicle or your house anything that you feel should be insured. Insurance
use statistical analysis to protect what has been covered by the company, insurance

The Inadequacy Of Free Enterprise
The Inadequacy of Free Enterprise The perception that there is a need for government involvement
in pensions is in large part due to the fact that private pensions are decreasingly reliable. According
to Bonnar (2008), "conventional wisdom suggests that private sector defined–benefit (DB) pension
plans are in the midst of a funding crisis" (p. 21). In terms of how this applies to Ontario in
particular, it is probably based, Bonnar (2008) argues, on the fact that the largest 100 companies in
the Toronto stock exchange saw their median funded ratios reduced from 108 percent by the end of
the year 2000 down to 79 percent in 2005. This is despite the fact that contributions made by
sponsors increased dramatically during the same period from 4 million dollars in 2000 to 14 million
in 2005. This is based on a study looking at the largest 100 companies on the Toronto stock
exchange index as determined by market capitalization (Bonnar, 2008, p. 21). Companies that did
not offer defined benefit pension plans were excluded from the analysis. Companies in the financial
sector were reviewed separately because the financial ratios are so drastically different in that sector
of the economy than elsewhere. Robson (2008) supports the idea that private pension funds are not
sufficient to meet the retirement needs of Ontarian workers, arguing that "By now, however,
evidence is overwhelming that the problems afflicting single–employer defined benefit plans are not
just the result of a series

Private Pensions Essay
For most Americans, retirement has become a lifelong goal. To retire comfortably, you need income,
and this income can come from one of three sources: savings, Social Security, or a company pension
plan. The unfortunate fact is that Americans save very little money nowadays, and for anyone under
forty, Social Security is a very hollow promise. For most, private pensions are the key to a
comfortable retirement. When it comes to private pensions, however, most companies and
employees themselves don't contribute enough money, meaning that future retirees will have to
work longer if they want to maintain their pre–retirement standard of liv¬ing into retirement. There
are two types of private pensions in America: the defined–benefit pension ... Show more content on
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Additionally, the costs of the pensions were also supported by the federal government in the form of
company tax deductions for whatever money was set aside for a workers pension plan. Over time,
these pension plans for industrial workers became very generous. Everything seemed promising,
until foreign competitors with no such pension obligations began to emerge. Many of these foreign
companies paid lower wages, but even worse, had products that were just as good as and sometimes
better than American manufactured products. When the once strong labor monopoly began to
crumble, pensions became a massive and unsustainable cost to most companies, many of which
were trying to stay afloat in an extremely competitive global market. Many employees thought that
their retirement was secure and agreed to lower wages with the promise of a generous pension plan.
Sadly, companies began to trim the fat away in order to survive, and many American's pensions
were on the chopping block. There just wasn't enough money in the funds to support them anymore.
Millions of Americans were faced with the harsh reality that jobs don't last forever and economic
security is not guaranteed. Many people thought that they had good unions, good pensions, and good
healthcare. That isn't the case today. Slowly, it all began to erode away at such a gradual pace that
most didn't even notice until it was too late for them to do anything about

U.s. Labor Policy Proposal Essay
Labor Policy Proposal
Presented by
Institution
Introduction Many people have no idea of what they expect to achieve after retirement when asked
about their retirement plans. The government's policies about retirement do not cater for the well–
being of retirees creating a lot of worry for the life after employment. The increasing number of
employees demanding cover by government pension programs and the current decline in the
retirement income levels contributes to the change of the American pension landscape (Heiland and
Li, 2012). The United States of America developed labor laws during the time when the country's
economy was independent and self–contained. The main aim of U.S. labor policy was to get rid of
different challenges affecting employees and improve their lifestyle in order to enjoy working in a
suitable environment. Additionally, the labor policy aimed at protecting American workers by law
and protecting certain human rights. According to Dugas (2013), despite the growing economy in
U.S. more than 28 percent of American workers lack confidence with the current labor policy on
retirement. The research conducted by the Employment Benefit Research Institute (EBRI) in 2013
revealed that most workers are not sure of saving money for retirement. The above information calls
upon a recommendation of labor policy about retirement that would fulfill the demands of workers.
The proposed policy will bring change to the Public Employees' Retirement Fund

It's Time to Privatize Social Security Essay
Social Security was established as a promise to the people of continuation of income into retirement.
Well the road to hell is often paved with good intentions, because that promise now has the country
in economic uncertainty. The guarantee that workers will be taken care of in their old age if they
paid their Social Security tax, is no longer guaranteed. If we don't come to a unanimous decision as
to a plan of reform; financially our country is doomed. Social Security has always struck me as a
socialist program. Returning to our capitalist roots is where we will find the solution to this problem.
Privatizing Social Security offers solutions to our current problems, and empowers the people with
ownership and a voice in their ... Show more content on Helpwriting.net ...
The government has borrowed against this surplus, to pay for other government expenditures in the
national budget, each year; and writing itself IOUs. By 2012 the government will have borrowed 3
trillion dollars from the trust funds (www.socialsecurityreform.org). The unexpected surplus is
attributed to the entrance of baby boomers into the workforce.
At the end of World War II mass numbers of soldiers were discharged from the military, and looking
to start a family to make up for lost time. The population explosion this created is known as "The
Baby Boom". When the baby boomers entered the workforce, there were more people working and
paying taxes than was needed to cover Social Security benefits. Thus, creating the surplus that we
see today. Not all baby boomers had children, and the ones that did had fewer children than previous
generations. When the baby boomers are ready to retire; there won't be enough workers to support
promised benefits.
In as early as 2012 it is estimated there will only be two workers paying taxes for every one
recipient of Social Security benefits. At that time the surpluses generated each year will cease, and
Social Security will begin to run a deficit (paying out more than it takes in). The government will
then have to begin paying back the money borrowed from the trusts, plus interest. Since no money
has been saved for this purpose, the government will be forced to increase the national debt, cut

Prince Georges County: Country Analysis
CAFR ANALYSIS PRINCE GEORGE'S COUNTY
I have seen many changes growing up in Prince Georges County (PG), a minority–dominated
county in Maryland. The government has spent a massive amount of money to revitalize the county.
This includes the $250.5 million transformation of Jack Kent Cooke Stadium (now FedEx Field)
and the massive $2 billion National Harbor project in Oxon Hill, MD[i]. There are rumors the
county plans to rename the crime–infested city of Landover, where I currently live, to Hyattsville, a
neighboring city, predicting that this will ease the bad repetition of this area. However, these
renovations and changes are only temporary solutions since they are only masking the problems that
put my home county deeper in ... Show more content on Helpwriting.net ...
DEEP carries a low balance of expenditures totaling $567 to public safety with no expenditures
within the general government, public welfare and debt service accounts. However, PMS, DV, and
CC all carry expenditures. PMS has the balance of $150,572 in the general government expenditures
sector and DV has the balance of $303,401 in the public welfare sector. CC has a deficit expenditure
of $5,000 in general government despite not having any revenues for this fiscal year. Finally, DEEP
started with beginning year fund balance of $4,866,750 and ending year fund balance of $6,971,225,
which shows the fund, has increased more than $2 million. The other three program funds have
decreased.
Despite substantial support of DEEP by the state, it is mindboggling the crime rates continue to soar.
According to the PG Police Department, between the years of 2000 to 2004, PG has had an increase
of 23.1% in total crime. In addition, the county has a 62.8% increase in total crime between 1984
and 2004 relating to drugs and other illegal paraphernalia[iii]. These alarming statistics has lead
many to conclude that program funding is being distributed and executed improperly.
The pension fund has a great deficit when comparing assets and liabilities. The total number of tax
delinquencies has nearly tripled compared with prior years. According to the Schedule of Funding
Progress (Sch. Of FP,) the county has outstanding pension liability of $762,335,239[iv]. These
pension

A Brief Note On Pension And Pension Liability
Pension vs Pension Liability A pension is an amount of money that a business or government uses to
make payments to its retirees. The company usually doesn 't pay pension benefits directly, rather it
buys an annuity which converts a fixed amount of money into a lifetime of annual payments for the
retiree. However, investing in it can be tricky. The amount to which a guarantee is based on, changes
over the years. When the stock market takes a decline, the investment can too which means less
money for all concerned creating what is called a pension liability. A pension liability is considered
to be the difference of the amount that 's due and the amount of money that is actually available. The
liability happens in a traditional DB scheme or a Defined Benefit scheme such as a matching fund
that guarantees a certain amount of retirement income. When the government or other agencies use
money that was meant for pensions for other reasons, and don 't replace the funds, this could create a
pension deficit or liability. Another way in which a deficiency may occur is to have thousands of
people retire or laid off at the same time. Pensions in the UK For some time now, the UK pension
fund has been under the scope. The pension fund operates on a collection of earnings or component
of earnings. It 's very much a part of the UK 's economic position and lately, its disruption. It 's
important to Russia and other sizable European markets mainly due to the returns of the

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