Pension Tension: Balancing Realistic Funding & Employee Satisfaction - Essay Sample

Introduction

The primary contention in the article of pension tension is altering plans to relieve financial pressure. Cities must balance realistic funding with satisfying employees. It is due to this reason over decades, state and local government employees across the U.S. knew that when they turned 65 since they could retire without becoming destitute (Axelrod, 2019). Employees who used to work for years for public service had were promised pillow of a pension to pad their purses as they eased into their golden years. Even though these days receiving a fully funded pension upon retirement is not necessarily a guarantee.

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The author supported the primary contention as reviews on pension tension when it was established, terms of payment, and how well it is recently. The author explains that over the past 40 years, investment specialists convinced public plan fiduciaries more and more to invest in equities, hedge funds, alternatives, and other areas. It comes across that about one-third are doing relatively fine in possessing the assets needed to fund pensions now, and moving forward, it is through the research of the author he derives this (Axelrod, 2019). The author also notes solutions proposed to tweak pension plans to meet favorable outcomes.

In relating the article of pension tension to study is so vital since any action a city or a state may take regarding any pension plan is something they say would be considered in the light of their circumstances. In their demographics and their relationship not only with their plan administration but with their legislature and how these things work together. The article of pension tension helps in acquiring knowledge about how offering public services deserve pension payment (Axelrod, 2019). It is by this that unions develop an excellent relationship since they do it the right way: sitting across the table, negotiating with them, providing the facts and data, and honest with them.

The study of pension tension may help in relating how funds administration had then to be figured out and how fully fund obligations to actuaries. The pension and other post-employment benefits while doing right by retirees and union members. It also helps in the identification of any crisis averted being strike or economy crisis too. It is due to this understanding helps one to understand how pension tension article is essential and its relationship with public services employees.

Pension tension since it is a future planned payment to be made to employees should be accomplished with immediate effects at the time of payment. Pension seen as an appreciation should be taken with a great recession. Since records are seen to have changed with time on pension towards the economy, performance payment must be adhered to (Axelrod, 2019). The stock market being one of the obstacles in the underfunded pension should be revisited. Policies regarding it should be implemented to all public services employees without failure.

Since solutions are proposed, a follow-up of implementation should be made to ensure all the pension established should be made. As the author said that dealing with people's money is dealing with people's future, pension should also vary keenly while dealing with it. Holding the facts that pension funding was not an immediate issue as from Fort Worth, leaders should address all the challenges and problems within the time for the avoidance of future catastrophes. At the end of the day selection of the public employer need to be well funded, and it needs to provide adequate retirement benefits once the individual decides to retire.

Reference

Axelrod, J. (2019). Pension tension. Retrieved 3 October 2019, from https://www.americancityandcounty.com/2019/09/03/pension-tension/