Boeing Co.: Article Analysis

For an extended period, state and local policymakers and labor unions ignored as the growing public pension obligations became an increasingly fiscal burden. The pension problem was enormous and associated with irresponsible financial practices connected to defined benefit pension plans (Thompson, 1980). Following this, the state of California and its local government have a problem of unfunded public pension liabilities that was estimated to be around $583 billion. Because of this, as Lu and Otto (2003) claim, several cities in the state have had a difficult duty of balancing budgets in a balanced way to the public employees and taxpayers, while continuing to provide public services to the

The 401(k) plan is usually at the back of a plan sponsor’s mind. It doesn’t renew annually, and it never fights for attention like health insurance and business insurance renewals do. However, it’s time to bring that afterthought to the forefront. With the Department of Labor’s (DOL) Fiduciary Rule, a litany of class action lawsuits and the fact that 65 percent of DOL audits in 2014 resulted in plan sponsor fines; there is a certain level of responsibility expected of plan sponsors. The DOL Fiduciary Rule is the byproduct of many of these class action suits, years of haggling with Wall Street to close loopholes that have existed since 1940, and the Obama administration’s desire to bring objective advice to plan sponsors and participants alike. Over the next year, before the regulation comes into effect in April 2017, plan sponsors have important decisions to make, and it’s vital to understand what options there are moving forward.

The 401(k) plan is accessible to full-time employees who work at least 30 hours within a work week. An employee must work for the organization for at least 12months and be at least 21 or older to qualify for this plan (Apollo Group, 2013). The company’s pension plan is currently done through open enrollment though the process may change in the near future to automatic enrollment. The idea of doing an automatic enrollment will automatically enroll each and every employee in that particular retirement plan unless the employee chooses not to after the fact. The employee would have the option to opt-out at any point within a particular deadline which is 90 days. With the current open enrollment plan, Riordan employees have the choice to choose just how much of his or her paycheck will contribute to the plan and the company will equal that amount or up to a particular dollar amount. The benefit in enrolling into the 401(k) plan is the employee’s contribution is deducted before state and federal withholdings (Apollo Group, Inc., 2013).

Are you a business owner who is concerned about attracting and retaining quality employees? Are you unsure which retirement options you should offer your workforce due to complicated matching and tax concerns? You’re not alone. Many business owners struggle to provide the best retirement option for both their employees and the business. One option that many businesses are choosing is a Safe Harbor Retirement Plan. This style of retirement plan is popular because it benefits both the workers and the business.

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.

9. How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits?

Almost everyone has heard about the demise of Sears Canada. The loss of such an established and renowned retail company caused quite a stir. While many speculated the company hadn’t done all it could to keep up with a changing retail environment, others pointed to those same changes as a herald of things to come. Of more interest to employers and HR managers, employees, and the general public alike was the way Sears handled issues such as benefits and pensions for current and former employees.

Gulfstream Aerospace exemplifies a modern, high technology, knowledge intensive company, requiring a significant proportion of its workforce to acquire and utilize abstract perception, learning, and reasoning in the design, manufacturing, certification, outfitting, and maintenance of its core product, business jets. Although the work force is high-skilled, micro- and macro-economic constraints apply to this resource, such as increased hiring rates at the startup of new aircraft programs, reduction in workforce (RIF) through attrition, layoffs, and restructuring during downturns in business cycles, relocation, and retirement.

In the 1940s, the payroll taxes from approximately forty workers were supporting one beneficiary; by 2030, however, only two workers will be supporting each retiree (Saving). This decrease is caused by a combination of a longer life expectancy, increased benefits, and a lower birth rate. Although it benefits millions of Americans each year, there is now much discussion of reform because of the decrease in the worker to retiree ratio.

1. In a defined-contribution (DC) pension plan, the employee or employer, or both, make regular contributions to the plan. In the US, employees typically set aside a predetermined percentage of their earnings which is deposited to the plan and the employer will match that contribution. Ultimately, the amount of money available to the individual upon retirement is determined by the performance of their investments. Each employee retains the option to choose how to diversify their investments, while the employer will typically provide a “default allocation” option. The options available are generally very varied, and includes a number of index funds and actively managed mutual funds.

Through this plan the management has increased productivity, creativity, quality and innovation in the company. Boeing has companywide diversification

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.

Boeings legal responsibility subjected to the issue of, consistent employee support to those who feel the need for counseling that will provide them direction and give advice on several concerns that has impacted this organization or with personal concerns of their employees and their families. “The Boeing Employee Assistance Program offers services to employees and their dependents (including spouses and children)” (Pulham, 2005, Boeing Frontiers, ¶ 1). Boeings organizational financial counseling service provides “free of charge” sessions. This program includes around-the-clock coverage, and crisis servicing coverage. The program counselors are available to provide in-depth support, on wide range of specific issues, including investment strategies, and debt and credit concerns.

Currently, there are many concerns over the continued solvency of Social Security. Moreover, in 2009, when the output of funds exceeded the income, Social Security began “running in the red.” Owing to the fact that the worker-to-retiree ratio reduced to 2.8 workers per every retiree, over five times less than the 1950 ratio of 16 workers for every retiree. The change was a result of the retirement of the Baby Boomer generation (Wiley). Today, 14 percent of the population is age 65 and over, which is expected to increase to 23 percent by 2080. Likewise, the working population is 60 percent today, yet is estimated to be 54 percent in 2080 (Reznik). The result of this depleting fund is an estimated Social Security “death” by 2033. After 2033 only 77 percent of those benefits will not be solvent (Greszler). This is a huge fright to the 20 percent of current recipients that depend on Social Security for all

If the advanced countries the existing retirement protection system is not adjusted, it will pose a serious financial blow States.