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Article Review Pension Plans

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Article Review: Pension Plans

Benefits

HRM 599

Devry University’s Keller Graduate School of Management

October 7, 2013

Professor Brian Nisbet

Yolanda M. Green

Pension Plans

The article entitled “Pension Plans” was written by Al Thomas, with means of informing workers of the different types of retirement plans that should be accessible by their employer. The article was also written to explain which of those plans are better for employees to choose from in order to maximize the amount of money that they will receive after retirement. During the time of this articles publishing, it appeared that some companies were using unreal rate of returns for projections of better profits (Pension Plans). The rest of this article review will give insight on the two different options that employees can choose from when deciding on retirement plans and how to be sure that each move after will help them achieve their main goals, which should be retirement savings.

The article mentions the first type of pension plan that is available to employees, which is called the “Defined Contribution Plan”. Under this plan you will be able to put in any amount of money into your retirement plan and in return the company will match a certain percentage of that. During this week in our class discussions we talked a lot about employer match contribution amounts and if we thought that it was enough for someone to survive at retirement. A lot of classmates agreed that contributing the most amounts towards the retirement plan is the best option, mainly because the employer will match it. There is in most cases a cap limit in which the employer states that they won’t go over that amount when matching an employee’s contributions. That amount as we discussed this week can be anywhere between 3% and 6%. Up under the defined contribution plan...

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