Looking for a 7 page essay with the topic - Retirement/Pensions in APA. must have a minimum of 7 references

Running Head: RETIREMENT/PENSIONS 1
Retirement/Pensions
Student’s Name
Instructor’s Name
Course Title
Date Submitted
Retirement/Pensions 2
Introduction
Pensions have been defined as either the defined contribution plan and as the defined
advantage plan. Both have still been in use these days however defined contribution plan
has now been prefe
ed kind of the pension offered through several employers. Nowadays,
around 2/3
d
of the workers covered through the pension plans have been covered by the
defined contribution plans, roughly 1/3
d
through the defined benefit plans. It represents the
adical shift from earlier years if the old defined benefit plan had been far more general. In
the paper I have planned to explain pension plans as well as how these have been
accounted for through the organization. To begin I will explain kinds of pensions as well as
how each single advantage the account holder & affects the organization.
Defined contribution plans
Defined contribution plans have been the kind of pension plans, which many
organizations use nowadays. Defined contribution plans have been defined as the Defined
contribution pension plan that promises the fixed annual contributions towards the pension
fund (Defined Contribution Pension Plans, 2012). Such kind of pension has been most
general kind of plan as that needs employer to pay lesser over course of the tenure of the
employee with the organization.
Reason that it cost organizations lesser money has been because they just put in the
set amount of money in account for employee. Much generally this has been seen as the
401k plan in which organizations matches some percentage of contribution of the
employee. Such kind of plan has been easier for the organization to account for as this
Retirement/Pensions 3
needs the organization to make single entry at end of year towards accounting for
contributions.
Defined benefits plans
Defined benefits plans have been quite rare in nowadays world due to expense to
organization. Defined benefit plans have been defined as the Defined benefit pension plan
that promise the fixed retirement benefits defined through the designated formula (What is
a Defined Benefit Pension Plan?, 2010). This plan has been most usually just seen and is
eing used through the local as well as the federal government.
Reason such kind of plan has not been seen quite often has been as that cost
organizations more in longer run because of fact that the organization has agreed for
paying some amount of the money to their retired employees apart from or their benefit
obligation.
This kind of plan is having the higher risk for organization & this might also be the
isk for employee when the organization goes under. This kind of plan needs more work
ather than the contribution plan because of the fact many organizations hire actuary for
managing the funds
Actuary has been highly trained professionals, which concentrates particularly on the
statistics as well as the mathematics. Duty of the actuary in pension process has been
defined as the actuary also has the career option in the pension fund management,
forecasting the future payouts as well as deciding the present contributions as well as
investment policies in lieu of them (Kolakowski, 2012).
Retirement/Pensions 4
Therefore towards being exacted on what they do has been they manage the
pension fund as well as invest money for ensuring that this would meet forecasted payouts.
Additionally actuary also forecast future payouts as well as decides policies for
organization on pension and their payouts.
Accumulated benefit obligation has been termed as accumulated benefit obligation
(ABO) has been estimated depending on assumption, which pension plan has to be
terminated at once; this may not consider any future salary enhancements (Accumulated
Benefit...