...1. Is the social security system base in the same principles as private insurances? Why or why not? No, I do not feel like they are based on the same principles because social security is Work Related and enables economic security for workers and their families is based on their work history. Entitlement to benefits and the benefit level are related to earnings in covered work. Benefits are an earned right and are paid regardless of income from savings, pensions, private insurance, or other forms of no work income. How much a person gets and under what conditions are clearly defined in the law and are generally related to facts that can be objectively determined. 3. Do you think workers should be permitted to invest all or part of their social security taxes into a personal retirement account? I do think that workers should be permitted to invest into a PRA because it would let the\m save and invest for their retirement and provide workers with a property right to the funds contributed into their accounts and reduce dependency on the government. 4. How does social security affect the economic well-being of blacks relative to whites and Hispanics? According to statistics blacks have a shorter life expectancy than whites and Hispanics, blacks are more likely to pay a lifetime into social security and see little of it. Hispanics have an above average life expectancy and therefore derive a higher return rate than both whites and blacks. Blacks also have a lower return...
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...If you mean the death benefits of the insurance policy, then these funds are generally free from income tax to your named beneficiary or beneficiaries. You may elect to have the insurance company hold on to these proceeds after your death and distribute them to your beneficiary at a later date or in a series of installments. The funds that the insurer holds are earning interest, and when a payment is made to your beneficiary, it may include both principal and interest earned by that principal, or only interest. Although the principal portion of the payment is tax free, the interest portion is taxable to your beneficiary as ordinary income. In some cases, if you transfer the ownership of your life insurance policy to another party before your death for monetary value or other consideration, the proceeds paid to the beneficiary at your death could be considered taxable income to that beneficiary. This is a complicated matter, and you should seek the assistance of a tax professional before completing the transaction. The proceeds of your life insurance policy may be subject to federal estate taxes if you have what's known as incidents of ownership in the policy. If you control the policy in any way--that is, you can cancel it, surrender it, borrow against it, pledge or assign it, or can change the beneficiary--then you possess incidents of ownership in the policy, and the proceeds of the policy may be subject to federal estate taxes when you die. You might postpone these...
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...people’s pension, but that’s not the case. The title for the article is very misleading. According to the article State pension programs were funded up to 78%. Public pension is not in a state of turmoil. It is actually doing really well compared to some other publicly funded programs. Issues that had recently arose in places like New Jersey or Illinois, these places were giving the pension program a bad name for a while because their state was having an issue with public pensions. But truthfully the majority of programs like the pension program are no were near being in trouble. As our country is going through a recession, it takes a huge toll on our financial affairs for our state and our country. But the good thing is that publicly funded pension programs have many factors that help to aid in recovery if they need it. A few examples of things that put pension programs back in play: A pension that is underfunded is a huge problem and maybe a sign of a deeper problem. But about 78% of state pension programs are fully funded. Most experts say that time works in the favor of pension programs. They say this because the time and compounding interest will fix the losses that may occur. Public pension programs were greatly affected by the recession, but they have undergone a long recovery over the past few years. Researchers say that we are on the rise with healthy funding levels and it’s going to take a while to get back to normal but they are well on their way. Because pensions are...
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...Accounting SUBJECT: Reporting of Pension Plan in acquisition of Company ABC DATE: June 11, 2013 In the acquisition of Company ABC, many factors must be considered, including the acquisition of the company’s pension plans and the addition of two segments. After careful analysis, the two operating segments have caused a loss to the company and must be eliminated. This memo will outline the reporting procedures for the pension plans and the necessary steps that must be taken to eliminate the segments. Defined Contribution Plan One of the most frequently encountered and widely used pension plans is the defined benefit plan. Under this plan, the employer is required to contribute a pre-determined amount of the employee’s salary to this pension plan. The amount of benefits paid out at the onset of retirement are not guaranteed and “are determined by the return earned on the invested pension funds during the investment period” (Schroeder, Clark, & Cathey, 2011). Employees also have the option of designating where their funds are invested, whether it be in stocks or in fixed-income securities. The defined contribution plan has become popular among employers due to no risk on behalf of the employer and the ease of reporting. Variations of the plan include: thrift plans, savings plans, 401(k) plans, profit-sharing plans, and incentive savings plans. Because of its simplicity in reporting, the defined contribution plan periodic pension expense is equal to the amount...
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...Pension expenses have risen over the past decade and this rise in pension is expense is as a result of numerous factors. According to the detailed report by John C. Liu, the two main contributing factors to the disproportionate increase in New York City’s pension costs are lower investment returns and benefits enhancement put in 2000. Mayor Bloomberg believes that the primary reason for the increase is the benefits enhancement. This partially ties in with Liu’s findings from his research, as Liu believes it’s one of the two primary reasons for the increase. Mayor Giuliani, the New York City mayor from 1994 to 2001, increased pension benefits in the 90s because the city was benefiting from the bull market. This resulted in an increase in pension fund investment profits and thus the Giuliani increased pension benefits. The increase in investment returns reduced the pension expenses incurred by businesses thus making them feel as though the markets will soar forever. Companies got comfortable with the bull market since they were incurring less pension cost. However, they had little knowledge that they were setting themselves up for failure since the rate will balance out in the long run. This failure was triggered over the past decade when the bear market hit thus resulting in a major decrease in investment returns. This significantly increased the pension expense due to the gap between benefit obligation and plan assets that resulted from continuous decline in actual return on plant...
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...to share the cost of medical bills, just like Social Security is intended to share the cost of the retirement needs and help prevent financial hardship. Think of the expenses you currently have, and while some expenses might go away as your become older or retire, the cost of living is constantly going up. The average person will only collect approximately 40% of what they were earning before retirement. If you currently make $70,000 per year and are accustomed to living a $70,000 per year lifestyle, when you retire, you will be receiving $28,000 from Social Security. How drastic would your lifestyle have to change for you to be able to live off of $28,000? That is why it is important to supplement your Social Security with private pensions, 401(k) plans, IRAs or any other type of investments. Putting $50 or $100 back per paycheck in a separate...
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...Roaneka Williamson Phase 1 IP HSS121-1302A-01 April 15, 2013 The career that I am striving for is to become a Certified Medical Administrative Assistant (CMAA). I have a diploma in Medical Administrative Asst. but, I won’t to have a little challenge in my life and more money. So I am working on my associate degree, the reason I chose the medical field is because I love helping people I really do not like seeing people down and out so I try to cheer them up, even my kids when they are sick I am weak hearted so to speak. So for me to become a (CMAA) I would need my associates’ degree the diploma is okay and it is a start but having to be certified would make a big difference in my career level. EDUCATION The requirements to becoming a CMAA are to first being trained in the general healthcare office procedure which includes: * Medical billing, coding and reimbursement * Medical terminology * Anatomy and physiology etc. Also, you need to know how to interact with patients where it is in a hospital or a doctor’s office. The responsibilities for being a CMAA starts at the front desk when you see the patients and the duties for this is as follows: * Greeting patients * Ordering supplies for the office * Coordinating patients care * Checking and recording vital signs * Maintain patients records * Filling out insurance forms * Handing correspondent * Scheduling patient appointments * Handling billing and book keeping ...
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...CHAPTER 20 ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer F T F T T F F T F T F F T F T F T F F T No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Description Funded pension plan. Qualified pension plans. Defined-contribution plan liability. Defined-benefit plans. Vested benefit obligation. Accumulated benefit obligation. Definition of service cost. Definition of interest cost. Recognizing accumulated benefit obligation. Pension Asset /Liability balance. Plan amendment and projected benefit obligation increase. Years-of-service amortization method. Expected return and actual return. Unexpected gains and losses. Accumulated OCI (G/L) account and the corridor. Amortization of net gains and losses. Recording prior service cost. Reporting accumulated OCI (PSC) on the balance sheet. Other comprehensive income (PSC) and net income. Reconciliation of PBO and fair value of plan assets. MULTIPLE CHOICE—Conceptual Answer d c d c b b a c a a d d d a c b No. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. Description Factors considered by actuaries. Process of funding a pension plan. Accounting problems in pension plans. Nature of a defined-contribution plan. Nature of a defined-benefit plan. Defined-contribution plan characteristics. Accounting for a defined-benefit plan. Pension obligation measurement using future salaries. Definition...
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...Florida Pension Article Rebuttal Florida Pension Article Rebuttal On May 31, 2013, Florida’s Governor Rick Scott signed Senate Bill 534 into the Florida Statues. This Bill was sponsored by Senator Jeff Brandes and imposes new financial reporting requirements for local government pension plans. However in the article titled “Florida House Passes Legislation Relating to Local Pension Plans,” Mr. Volz states that “the Bill equips local pension plan administrators, employees and taxpayers with improved universal tools to evaluate the financial stability of local pension plans.” There is no proof that this Bill is improved as the evaluation tools do not accurately evaluate the financial stability of the plans. The tool is not universal, as the State Government Plan, the Florida Retirement System, is not subject to this Bill. This article was influenced by the politicians that are for this Senate Bill. Only those that had something positive to say about it were quoted in the article. The Senate President was quoted thanking Senator Brandes, Speaker Weatherford, and the colleagues in the House for helping more the reform forward (Volz, May). This article is not reliable, credible or even valid as it does not provide any evidence to back up its claims and it only presents the one side of the story. What this article does not say is the Florida League of Cities, the Florida Public Pension Trustee Association, and the actuaries of many of the states pension plans all oppose...
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...Westar Small Business Solutions Compensation and Benefits Jerome Rutledge, Rahim Shadid, Sridhar Venugopal, Ursula Wester, and Cassandra Woods HRM 531 April 18, 2013 Carolyn Szlaga Purpose The purpose of this plan is to provide fair and equitable compensation for the individual(s) that will be performing the assistant project manager role at Westar Small Business Solutions. This plan clearly describes the total compensation that Westar Small Business Solutions will be providing to those performing the Assistant Project Manager Role. Eligibility This compensation plan applies to full-time, managerial employees performing the Assistant Project Manager Role at Westar Small Business Solutions. This plan does not apply to part-time or contract staff. Goals and Objectives Westar Small Business Solutions believes in the following compensation principles: * To provide fair and equitable compensation to employees. * To reflect the extensive educational and experience credentials required of Consulting Professionals as well as the value their roles bring to the organization. * To offer competitive pay and benefits, within the context of our industry to attract and retain the best talent possible. * To use compensation as a tool to recognize individual merit. * To provide performance-based incentives to encourage excellence and reward employees for his or her contribution to the achievement of organization goals. Compensation Components Total compensation...
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...ZEDILLO PONCE DE LEON, Presidente de los Estados Unidos Mexicanos, a sus habitantes sabed: Que el H. Congreso de la Unión, se ha servido dirigirme el siguiente DECRETO "EL CONGRESO DE LOS ESTADOS UNIDOS MEXICANOS, DECRETA: LEY DEL SEGURO SOCIAL TITULO PRIMERO DISPOSICIONES GENERALES CAPITULO UNICO Artículo 1. La presente Ley es de observancia general en toda la República, en la forma y términos que la misma establece, sus disposiciones son de orden público y de interés social. Artículo 2. La seguridad social tiene por finalidad garantizar el derecho a la salud, la asistencia médica, la protección de los medios de subsistencia y los servicios sociales necesarios para el bienestar individual y colectivo, así como el otorgamiento de una pensión que, en su caso y previo cumplimiento de los requisitos legales, será garantizada por el Estado. Artículo 3. La realización de la seguridad social está a cargo de entidades o dependencias públicas, federales o locales y de organismos descentralizados, conforme a lo dispuesto por esta Ley y demás ordenamientos legales sobre la materia. Artículo 4. El Seguro Social es el instrumento básico de la seguridad social, establecido como un servicio público de carácter nacional en los términos de esta Ley, sin perjuicio de los sistemas instituidos por otros ordenamientos. Artículo 5. La organización y administración del Seguro Social, en los términos consignados en esta Ley, están a cargo del organismo público descentralizado con personalidad jurídica...
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...PENSION REFORMS IN INDIA NATIONAL PENSION SYSTEM (NPS) * GOVERNMENT INTRODUCED THE NPS FROM 1ST JAN,2004 THROUGH A NOTIFICATION DATED 22ND DEC,2003. * IT APPLIED TO ALL NEW ENTRANTS TO CENTRAL GOVERNMENT SERVICE, EXCEPT TO ARMED FORCES. * IT HAS BEEN ROLLED OUT TO ALL CITIZENS WITH EFFECT FROM 1ST MAY,2009 ON A VOLUNTARY BASIS. * ADOPTED BY 26 STATE GOVT. FOR THEIR EMPLOYEES. BACKGROUND OF PENSION REFORM * GOVT. OF INDIA SET UP AN EXPERTCOMMITTEE IN 1998 TO DEVISE A NEW PENSION SYSTEM FOR INDIA. * PROJECT OASIS,WHICH WAS CHAIRED BY S.A. DAVE, SUBMITTED ITS REPORT IN 2000. * IT RECOMMENDED CREATING NEW PENSION SYSTEM BASED ON INDIVIDUAL RETIREMENT ACCOUNTS (IRAs). * ON ABOVE RECOMMENDATIONS, THE GOVT. SET UP ITS NEW PENSION SYSTEM ( NPS). * IT RESULTED IN SHIFT FROM A DEFINED BENEFIT MODEL TO A DEFINED CONTRIBUTIONS MODEL. REASONS TO SET UP NPS * AGING POPULATIONS POSE SIGNIFICANT CHALLENGES,LEADING TO GOVT.LIABILITIES . DEMOGRAPHIC PROJECTIONS INDICATE SIGNIFICANT RISE IN AGED POPULATION. FISCAL STRESS OF THE DEFINED BENEFIT PENSION SYSTEM WAS THE MAJOR FACTOR DRIVING PENSION SYSTEM REFORMS FOR EMPLOYEES IN THE ORGANISED PUBLIC SECTOR, (GOVT. EMPLOYEES ). BENEFITS OF NPS * SCHEME IS PORTABLE ANYWHERE WITHIN THE COUNTRY. * LOW COST INSTITUTIONAL INFRASTRUCTURE. * FLEXIBILITY TO SUBSCRIBERS.TO SLECT INVESTMENT INSTRUMENTS AND PENSION FUND MANAGER. * ONLINE TRANSACTIONS TRACKING FACILITIES THROUGH...
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...Crisis in Pension Systems. Many countries are experiencing the pension crisis which means that they don’t have enough money to pay future pensions for old people. This essay analyzing two possible solutions which can resolve pensions system problem. There are number of possible reasons of the pensions system’s problem. Firstly, earlier there can be noticed low birth rates in plenty of countries. As a result in present time the number of people of working age reduced which resulted into low tax revenues. In addition, it can be seen that people’s life expectancy increased and therefore there is higher proportion of elderly people comparing with a total population which can lead to the increased strain on pension funds. Another reason for poor performs of pension funds can be international financial crisis which has significantly resulted into uncertainty in stock market and it has led to the weakness of financial institution. One solution, which is common, is to increase retirement age of people. Public sector workers and people receiving state pensions must work longer. In order to receive their pension they should reach the statutory retirement age. For example, many European countries, including the UK and France, have increased retirement ages. Due to the fact that this solution delays the pension funding, it gives governments more time to adjust economic policies and hope the economy will be stronger in the future. As this solution produces considerable saving it can be...
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...Lesson 13: Investing in Mutual Funds What is a mutual fund? * A mutual fund is a professionally managed pool of money invested in stocks, bonds and other securities. * By purchasing mutual funds, small investors can easily diversify their investments and enjoy the benefits of professional management. * Investors own units or shares in the fund and benefit proportionately from any increase in value and/or income earned by the investments owned by the fund. The Reasons Investors Choose Mutual Funds | Mutual funds have grown in importance in Canada over the last twenty-five years. As of February 2008, there were 2,038 mutual funds with a total worth of nearly $679 billion – up from only $3.5 billion in 1981.The two major reasons investors choose mutual funds are: 1. Professional management - although there is no guarantee that the fund will outperform the market. 2. Diversification - by asset class (i.e. by holding a mix of stocks, bonds and money market investments) or within each asset class (i.e. by holding a variety of securities within each class). The risk of mutual funds arises from the risks associated with the investments they hold. * For example, a bond fund will be subject to interest rate risk – as interest rates rise, the value of the bonds owned by the fund will decline. | Mutual Funds With and Without Loads A load is a sales commission. In a load fund, the investor pays a commission every time he or she buys units (front-end load)...
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...techniques to calculate the probability of events such as death, disability, sickness, unemployment, retirement, and property loss. Actuaries develop formulas to predict how much money an insurance company will pay in claims, which determines the overall cost of insuring a group, business, or individual. Increase in risk raises potential cost to the company, which, in turn, raises its rates. Actuaries analyze risk to estimate the number and amount of claims an insurance company will have to pay. They assess the cost of running the business and incorporate the results into the design and evaluation of programs. Casualty actuaries specialize in property and liability insurance, life actuaries in health and life insurance. Pension actuaries deal only with pension plans. The total number of actuaries employed in the United States is approximately 21,340. Quick Facts Duties Use statistical formulas and techniques to calculate the probability of events such as death, disability, sickness, unemployment, retirement, and property loss None $50,000 to $100,000+ Good Alternate Title(s) Salary Range Employment Prospects Advancement Prospects Good Primarily Indoors Opportunities are available throughout the United States, but are best in large cities • Bachelor's Degree Work Environment Best Geographical Location(s) Education and Training Related School Subjects • Business • Economics • Mathematics Experience Participate in at least one internship while in college;...
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