Week 8 Discussion 1
“Public Sector Pensions and Benefits” Please respond to the following: Review the author’s statement in Chapter 13: “New-generation human resource managers must add to their work portfolios how to help employees make appropriate decisions about participation, contribution, and even investment in their benefit packages so that they better enable themselves when they retire to maintain the standard of living they had when they were working.” Analyze your own retirement pension and benefits package, (or absence of a company-provided package) and offer three pieces of advice to Generation X-ers and Generation Y-ers regarding their retirement.
If you’re a member of Gen X or Gen Y, why not get 2017 started on the right track by taking steps to improve the odds that you’ll be able to enjoy your retirement years without the stress of worrying about your finances?
It’s never too early to start planning for a long and prosperous life. But don’t try to do everything at once you’re more likely to succeed by taking just one step at a time. So act on one of these ideas each month, and before half the year has passed you’ll be well on your way to financial freedom in your later years.
Step 1: Find ways to spend less money. The No. 1 reason most people give to explain why they can’t save any money is that they spend their whole paycheck and then some in order to afford all the things they need or want now. Instead of that line of thinking, why not think of it this way: You can buy yourself freedom from work in your later years if you’re careful about how you spend your money today.
Step 2: Make changes to improve your health. There are simple things you can do now to significantly reduce the odds of developing expensive and debilitating illnesses at any age. And the sooner you get started, the better. Many readers may have innovative wellness programs at work that make it easy and rewarding to make progress. Improving your health doesn’t need to cost anything all it takes is determination. And another great benefit is that you’ll look and feel better right now and won’t need to wait for your retirement years for the payoff.
Step 3: Invest in your career. You won’t be able to invest much for retirement if you don’t have a job that pays well. If you’re in a dead-end job, maybe it’s time to investigate what type of training or education you need to start a career with more of a future. Or if you’re in a good career already, think about the steps you can takethat will make you more valuable, and thus more likely to be earn raises and promotions. It might not even cost you anything; maybe it just involves signing up for more training offered by your employer or taking on new responsibilities.
Step 4: Increase your retirement savings. Yeah, yeah, I know you’ve heard over and over that you should start saving for retirement when you’re young. Well, you’re going to hear it again!
Offering retirement benefits is a great way to enhance the benefits piece of your compensation package. Employees are encouraged to save for retirement through plans set-up at work because it’s easy to do. Also important for small business owners in particular, offering a retirement plan as an employee benefit allows you to take advantage of the plan for yourself.
The Pros and Cons of Offering Employees Retirement Benefits. (2014, January 07). Retrieved February 07, 2017, from http://www.bizfilings.com/toolkit/sbg/office-hr/managing-the-workplace/employee-retirement-benefits-pros-cons.aspx
Vernon, S. (2012, December 26). 4 retirement planning steps for Gen X, Yers. Retrieved February 07, 2017, from http://www.cbsnews.com/news/4-retirement-planning-steps-for-gen-x-yers/
Discuss at least two pros and two cons of allowing public employees to bargain collectively with their agencies about their retirement benefits (OPEB). (Refer to Table 13.4 Benefits Reform Dimensions in Chapter 13.)
With programs like Act 10 in Wisconsin being politically popular, there has been a movement within the United States to limit the powers of collective bargaining that unions have. Although all unions have been targeted in some way, it is the public employees outside of police, fire, and emergency services that have seen a reduction in their rights.
1. It requires two parties to come together to talk. There is often a divide between management and front line employees that doesn’t get bridged until collective bargaining negotiations begin. Of course both groups are going to be campaigning for what is in their own unique best interests. Coming together means compromising on both sides so that a beneficial agreement for both parties can be worked out.
2. It provides a solid foundation for wages and productivity. Workers need to be able to make a certain living in order to provide for their families. Businesses need to maintain a certain amount of productivity in order to remain profitable. In public service, productivity is required to maximize the use of taxpayer dollars. Collective bargaining becomes the foundation for both needs to be effectively met the best way possible.
1. Employees under a CBA tend to have better benefits than non-CBA employees. This is a key problem for public employees that have the right to negotiate. One of the primary sticking points in comparison is the responsibility for health care insurance premium payments. Before Act 10 in Wisconsin, public employees paid an average of 6% of their premiums compared to the 12% paid by the private sector.
2. It’s taxpayer money being negotiated for public sector employees. In some ways, collective bargaining between government overseers and public employees is like being taxed without representation. Both parties are effectively government representatives and one group isn’t elected at all. Removing the ability to collectively bargain allows the entire public to have a voice in how job structures are created and compensated.
Gaille, B. (2015, May 22). 10 Collective Bargaining Pros and Cons. Retrieved February 07, 2017, from http://brandongaille.com/10-collective-bargaining-pros-and-cons/
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