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Formal on Pensions for Public Employees - Research Proposal Example

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This amount is important for people because it provides them financial support after they have completed their services. This report presents a…
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Formal on Pensions for Public Employees

Download file to see previous pages... There are different types of pension plans and this report suggests the public organizations to use and implement ‘Defined benefit pension plan’ as this would be beneficial for most of the employees working in public sector.
Pension plans are of many types. Retirement plan, state and social pension plan, and disability pension are some of the types. It is mandatory for permanent employees that they should be given payment after their retirement in the form of pension. If it is not paid then it should be mentioned in the contract of the employees. Pension is defined the amount that an employee gets on his retirement through the contribution of employees and investment returns. This amount is received on a regular basis by the employee. Members’ contribution is deducted from their payroll throughout their duration of service (Davis, 1998). Generally, the amount of pension is predetermined and based on a defined formula. This formula may vary from one organization to another however the formula is based on employee’s history of earnings. In America, Public employee pension plan is suffering and the employees at the public organizations are not satisfied with the existing plan. One of the reasons for this is that government is exploring more unusual investments in order to feed the Public employee pension plan. OCER has invested 10.9 billion dollars in funds. Out of these funds, only 4% is from assets (Reicher, 2014). According to figure 1 presented in the appendix section, all public plans are funded in a well-mannered way and contributions from the employers are found lower in pension plans (Basich, 2011).
This report presents a proposal for the pension of public employees. Pension is an important aspect of the workplace as it provides funds at a stage when the person does not have the ability or energy to work appropriately for 40 hours in a week.
Senior management has an important role and they have to take part ...Download file to see next pagesRead More
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