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This article was written to explore why employees love pension plans and why companies try their best to avoid them. A pension is a sponsored company fund that purpose is to provide companies employees with a livable income for retirement. There are two types of pensions, contribution and benefit plans. Contibution the most common and simpler of the two, it is the amount of funds contributed by the company. These funds are invested over the span of the employee career. The balance in the account is paid out upon retirement. The contribution plan the employee’s pension is value on the performance of the investments which results in benefits paid to the employee to be uncertain. Benefit plan regardless of the returns on the pension funds’ investments, benefit plan payout to the retirees. The corporation is responsible for what fund can’t generate. Honestly a lot of corporations don’t utilize the benefit plan for that reason. A lot of companies are terminating their define benefit pension funds except for the employees that are current participating. From an employee perspective, most people are depending solely on their retirement for example 401 or pension. Having a pension plan provides growth asses with provides self-direction in retirement. From corporation perspective, if enough employees enroll in the plan, the company receives a tax advantage from pension plans. This allows for the plan to be a valid retirement choice. Plan is can be very complex most people avoid them, but not me I try to take time to understand and receive my rewards at end of my career.

How does this relate to the learning for the week in class?
This article relates to this week lesson because it explain how companies establish their retirement plans, how the savings and contributions how it relates to the economic and the strategic of benefits plans.

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