Benefits Are Vanishing

Topics: Pension, Tax, Retirement Pages: 4 (1054 words) Published: June 20, 2013
Benefits are Vanishing

Human Resource Management
Instructor. Nancy Warren
Embry Riddle Aeronautic University

By

Kisung Kim

Contents
Introduction……………………………………………………….3 Unethical company behavior
Difficulties with U.S organizations……………………………….4 Adopting defined-contribution plans
The domino effect of pension plan………………………………5 Conclusion
References……………………………………………………….6

Our society is changing and moving fast due to the advanced technologies. The technologies such as internet, transportation and advancement in medical have bought us more comfortable and convenient life style. It is hard to foresee how the society will be changed in the future. One of the big changes in our life is that people live longer and healthier due to the advanced medical care. Unfortunately, this becomes burden for companies who offer retirees pension plan. Because of people are living longer in retirement, the costs a lot more. (Ivancevich, p382) Therefore, companies start to look for a way to get out of the promise that they made for their retirees. While companies are looking for ways to get away from their promise, there are many issues are emerging throughout the nation which includes ethical issue, and the government intervention.

First of all, it is unethical for a company to promise benefits and then years later walk away from the promise. Instead of looking for the solution, it seems like they are looking for the way to get out of the situation. Simply say, they cannot walk away from their promise that the organization made to their employees. When people are looking for a job, one of the important things that they are looking for is the good company. In addition, the benefits offered by the company may be the reasons that people are staying their job. They worked hard and stayed in the company for 30 years, because the company has a good retirement plan. The company just cannot walk away and saying ‘thank you for your 30 years...

References: Ivancevich, John M. 2010, Human Resource Management, McGraw Hill, 11th ed
Roger Masters, Jul 1, 2009, Cost and effectiveness in American Health Care: paying for a new Mercedes and getting a clunker, Thefreelibrary (http://www.thefreelibrary.com/Cost+and+effectiveness+in+American+Health+Care%3a+paying+for+a+new...-a0210596219)
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