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ACC 499 Week 5 Discussion 1 ? Discuss the pros and cons of the U.S. Federal Government guaranteeing the pension funds of a private company when it declares bankruptcy

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Discuss the pros and cons of the U.S. Federal Government guaranteeing the pension funds of a private company when it declares bankruptcy. Discuss whether the U.S. Federal Government should guarantee and state your rationale.;The US Fed Government guarantees the pension funds of private company when it declares bankruptcy so that the average employee is not made to pay for the mismanagement of the top management or the financial loss incurred by the company and to safeguard the interest of the employees. Theoretically pension can be considered as deferred wages or forgoing current wages for future benefits which are received on retirement. The argument is that there is asymmetric information between the workers and employers and the workers at times do not even understand the intricacies involved and if they do may quit the company. The Fed Government guaranteeing the pension schemes gives them an assurance about their future benefits and

 

Paper#20738 | Written in 18-Jul-2015

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