Pensions

These workers’ tax money is the income that the elderly or disabled receive as income. Once these workers/tax payers are eligible for Social Security, a monthly income will be given to them. Social security should not be confused with company pensions. Company pensions are pre-funded, which means the money is collected in advance so it will be available to be paid out to today’s workers when they are ready to retire. Company pensions need to be funded in advance to protect the worker in case the company goes bankrupt or out of business. Social security has been around for many years, providing these benefits to millions of

Many young women were attracted to elderly veterans whose pensions they would receive once the veteran became deceased. The pension plan and the Social Security Act have similarities in regards to ushering out benefits to people that are in need. On the contrary the Social Security Act of 1935 created benefits for retired workers. Workers are eligible for Social Security once they reach the age of 65. At the time

The Employee Retirement Income Security Act (ERISA) is a piece of legislation enacted y the US Congress in 1974, after decades of similar legislation had been proposed and some of which had been enacted, but primarily as a means of addressing gaps in contemporary law and policy regarding employment pensions and retirement accounts (US Department of Labor, 2012). This legislation spells out certain requirements regarding information that retirement plan administrators must provide the participants and beneficiaries so that they can make pertinent decisions or take steps to safeguard their retirement savings, and also places certain guidelines and limitations on the conduct of managers of pension and retirement plans (USDOL, 2012). Government reporting standards and measures to ensure the protection of and proper access to retirement funds are also part of the legislation (USDOL, 2012).

As you may know there are two types of pension plans that are most commonly used: a defined contribution plan and a defined benefit plan. “A defined contribution plan sets forth a certain amount that the employer is to contribute to the plan each period (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). “A defined benefit plan specifies the amount of pension benefits to be paid out to plan recipients in the future. Companies that use this plan must make sufficient contributions to the funding agency in order to meet benefit requirements

An organization can offer several different types of retirement plans to their employees. There are two types of plans that are most often used such as the Defined Contribution Plan and the Hybrid Plans. The Define Contribution plans are beneficial not only to employees retirement needs but also beneficial to the company at the same time. Section 401(k) plans, Employee Stock Ownership Plans (ESOPs), Profit Sharing Plans, and Stock Bonus Plans. On the other broad of the spectrum we have the Hybrid Plan or the Cash Balance Plans, which may also be

The purpose of this paper is to investigate the creation of the Ontario Retirement Pension Plan and to argue that it is a necessary and potentially effective way to ensure that workers in the private sector in Ontario will be able to retire and live comfortably. This conclusion is not made lightly as it is import to view any broadening of government influence through the most critical of lenses. However, there is an increasing need for Ontarians to save for retirement and it is becoming more and more apparent that private pension plans will not be able to meet the needs of most people. This is because too few people have private pensions and the once that do exist sit on volatile ground.

a. i. An employer with a defined-contribution plan pays into the plan either an annual lump-sum per employee or calculates payments based on the employees‟ current wages and or time of service with the firm. Under such a plan, the employer does not guarantee the future amounts employees will receive when they retire. The employees covered by a defined-contribution plan assume the risk for the pension plan‟s financial performance. Under a defined-benefit plan, the employer specifies the size and timing of the payments that the employees will receive when they retire. Typically, these retirement benefits are commensurate with the wages earned by the employee in his or her last few years of employment

The Individual Retirement Account, or IRA, was formed in 1974 under the Employee Retirement Income Security Act (ERISA) (Holden, Ireland, Leonard-Chambers, & Bogdan/Investment Company Institute, 2005). When the Traditional IRA was first created, it had two functions: the first was to give tax benefits to workers who contributed to an IRA without an existing employee retirement plan, and the second was to allow funds in an existing employee retirement account to be relocated to an IRA when he or she changed jobs or retired (Holden, Ireland, Leonard-Chambers, & Bogdan/Investment Company Institute, 2005). Since then, eligibility requirements and contribution limits have changed, and different forms of IRAs were established.

On August 17, 2006 the Pension Protection Act of 2006 (the Act) was signed into law. The Pension Protection Act ("PPA") [P.L. 109-280] originated as a single-employer defined benefit pension funding reform bill to strengthen the DB pension system. However, it is best known for the number of provisions to enhance 401(k) and 403(k) plans, especially the auto enrollment feature. Among other noteworthy provisions are those intended to remove legal obstacles to, and create new incentives for, automatic enrollment 401(k) and 403(b) plans. It represents one of the most comprehensive pension reform legislation since ERISA was enacted in 1974. The Act has lead to many companies changing the way their plans are designed and administered, amend plan documents, increase plan funding, and make additional plan disclosures in regulatory filings and to plan participants. The Act made many sweeping changes but for the sake of brevity, only the automatic enrollment plan made by employers on the behalf of its employees is addressed in this report as to the rationale behind the passage of the PPA. Even though the provisions generally apply both to 401(k) and 403(b) plans, for explanatory purposes all references will refer only to 401(k) plans.

The social security act and related laws offer so many different programs to help those that qualify for the benefits. These programs include retirement insurance, survivors insurance, disability

The Social Security Act of 1935 provided retirement benefits only to retired workers themselves. In 1939, before any benefits had been paid, the first of numerous extensions to the system provided benefits for survivors and dependents. Later extensions included several classes of workers not covered under the original law. For example, during the 1950?s state and local government employee, members of the armed forces, and many farm workers, domestic workers, and self-employed professions were taken into the system In 1956 the age at which women become eligible for some benefits was reduce from 65 to 62, and in 1961 men were given the option of retiring at a reduced level of benefits at the age of 62.

Social security is the one most people know of today. Social security was created for older people who had a hard time working. It allowed them to still have money to provide for their family. Social security takes a little bit out of your paycheck and saves it for you. You had to be over the age of sixty in order to get social security. Also, if you can not work you would get disability which would also come out of your social

(“Social Security” program is based on contributions that workers make into the system. While you're employed, you pay into Social Security and you receive benefits later on, when it's your turn to retire. Contributions take the form of the Federal Insurance Contribution, which is institutional). On the other hand the Federal Emergency Management Agency's Public Assistance (PA) program provides supplemental federal assistance to local, county and tribal governments, to state government agencies, and to certain private nonprofit organizations, all of which must meet specific criteria and are both institutional and residual (Tussing, 1974). The mission of Social Security is to support our citizens and guarantee that as a nation we work together

This IRA is meant for “business owners to help contribute toward their employees retirement as well as their own retirement as well” (SEP Plan FAQs). “The amount that employers can deposit into this IRA is up to 15%” (Internet Retirement Allowance). The benefits of this IRA are “less responsibility, low fees, tax-deferred and tax deductible” (Simplified Employee Pension Plans-Pros and Cons). The employee does not have a lot of responsibility because he or she does not have to put the money into the retirement account on his or her own; the employer does it directly. While this is helpful to the employee, the “employer gets to deduct the contributions that they make into the fund from their taxes creating an incentive for them” (Simplified Employee Pension Plans- Pros and Cons). SEP accounts have reasonable fees; they’re not over the top. The last benefit of a SEP IRA is “the money you make in the retirement account from investments is allowed to grow tax-free; you do not have to worry about taxes before you retire”(Simplified Employee Pension Plans- Pros and Cons). The disadvantages are “contributions and no guarantees” (Simplified Employee Pension Plans-Pros and Cons). The bad thing about contributions is that the employee does not get a say on how much they want to deposit into their SEP account; the employer decides for them. The last thing that is a con is that “there could be no requirements for contributions; they employer can pick and chose when they want to make a contribution to the employees account” (Simplified Employee Pension Plans- Pros and Cons). The SEP IRA is good for employees who do not want the responsibility for putting money into their retirement account. It is a risky one since the employee will be depending on the employer to do their part of the contribution. It is important to make sure you have a good employer if you do decide to choose to go with the

Unlike the old days where a retiree could rest assured that they could live out the rest of their life on their pension and social security checks, the retirees of today receive their pensions paid out in a lump sum that takes the place of the pension check, but encompasses the total amount a retiree has to live on until they pass away. This creates uncertainty in the amount a retiree can spend per month, and if the total amount is sufficient to last them until they pass away. Immediate annuities help to create certainty in the financial situation of retirees. While retirees can be certain that they will receive a social security check each month, the amount of income they