Pension Plan Funding Shortages

908 Words4 Pages
Pension plan funding shortages for city, state, and federal employees, as well as employees in for-profit businesses, have stirred significant debate in recent years as government agencies and businesses struggle to manage revenues, expenses, and the key thread within the mix, the pension plan participants. The issues associated with pension plans present challenges to the management leadership in balancing the commitments to the pension plan participants and to the overall well-being of the city, state or federal entities, or the business shareholders. Background Information: Why exactly would managers need to be concerned with pension plans? The answer is much more difficult than the question itself. Managers are more than just people who are directing tasks to employees. They also have to think about the future as well as what is good for their company. Pension plans have come under attack lately, especially in the federal government. This issue is forcing managers to be more concerned with what their people are thinking about than the normal day to day business. In a recent article from the Wall Street Journal (2013, October 6), Detroit's bankruptcy is forcing the city to look into suspending or changing pension plans for firefighters and other government workers. These unfunded pension plans totaling close to $574 billion are wreaking havoc on budgets. Managers have to be concerned with the budgets of their companies. Additionally, managers are going to have

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