scholarly journals The Labor Agreements Between UAW And The Big Three Automakers-Good Economics Or Bad Economics?

2011 ◽  
Vol 7 (1) ◽  
Author(s):  
John J. Lucas ◽  
Jonathan M. Furdek
Keyword(s):  
Wage Structure ◽  
Global Market ◽  
Ford Motor Company ◽  
General Motors ◽  
Defined Contribution ◽  
Font Size ◽  
Defined Contribution Plans ◽  
Labor Agreement ◽  
Hourly Workers ◽  
New Hires

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">On October 10, 2007, the UAW membership ratified a landmark, 456-page labor agreement with General Motors.<span style="mso-spacerun: yes;">&nbsp; </span>Following pattern bargaining, the UAW also reached agreement with Chrysler LLC and then Ford Motor Company.<span style="mso-spacerun: yes;">&nbsp; </span>This paper will examine the major provisions of these groundbreaking labor agreements, including the creation of the Voluntary Employee Beneficiary Association (VEBA), the establishment of a two tier wage structure for newly hired workers, the job security provisions, the new wage package for hourly workers, and the shift to defined contribution plans for new hires.<span style="mso-spacerun: yes;">&nbsp; </span>The paper will also provide an economic analysis of these labor agreements to consider both if the &ldquo;Big Three&rdquo; automakers can remain competitive in the global market and what will be their impact on the UAW and its membership.</span></span><span style="font-size: 10pt;"></span></p>

scholarly journals Portability Rewards And Avoidance Of Longevity Risk: Factors In The Growth Of Defined Contribution Plans

2010 ◽  
Vol 8 (10) ◽  
Author(s):  
Beverley Hollingsworth ◽  
Wei Wang
Keyword(s):  
Investment Strategy ◽  
Longevity Risk ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Insufficient Evidence ◽  
Font Size ◽  
Defined Contribution Plans ◽  
Investment Returns ◽  
Defined Benefit Plans ◽  
The Relationship

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">The decline in defined benefit plans has been offset by a significant growth in defined contribution plans. An important consideration in this phenomenon lies in the fact that employees view this shift as a tradeoff between longevity risk and portability rewards. Companies are shifting from defined benefit plans to avoid the longevity risks associated with such plans. On the other hand, in some instances when given the option, employees chose defined contribution plans, due to the associated portability rewards where participants have a choice of rolling over, or transferring plans from former employers.. This paper examined research relevant in assessing factors contributing to growth in defined contribution with particular interest in 401(k)s and the relationship between investment returns, the availability of loans, and investment strategy that may affect plan growth. It is concluded that there is insufficient evidence for assuming a relationship between investment returns, loan availability and investment strategy and the growth of defined contribution plans. </span></span></p>

scholarly journals Did The Labor Contracts Between The UAW And The Big Three Automakers Work?

2010 ◽  
Vol 3 (1) ◽  
pp. 9-14
Author(s):  
John J. Lucas ◽  
Jonathan M. Furdek
Keyword(s):  
United States ◽  
Global Economy ◽  
The United States ◽  
Global Market ◽  
Ford Motor Company ◽  
General Motors ◽  
Labor Contracts

In the Fall 2007, there were landmark labor contracts agreed upon between the United Autoworkers (UAW) and the Big Three Automakers—General Motors, Ford Motor Company, and Chrysler LLC.  The impetus for these truly historic labor agreements was to afford the automakers to remain competitive in the global market while labor was to be protected.  Since the passage of these labor contracts, auto sales have continually declined to record lows due to the recession in the United States.  This paper will trace the major contractual provisions of these labor agreements and also analyze how effective they were in accomplishing the stated goals for both the UAW and the Big Three automakers.  Additionally, the paper will examine the necessary changes needed in these labor contracts if the automakers are to survive in the global economy.

A Comprehensive Review of the Evolution of Accounting Standards for State and Local Government Pensions and Other Postemployment Benefits in The United States

2019 ◽  
Vol 46 (1) ◽  
pp. 57-77
Author(s):  
Dale L. Flesher ◽  
Craig Foltin ◽  
Gary John Previts ◽  
Mary S. Stone
Keyword(s):  
United States ◽  
Local Government ◽  
Accounting Standards ◽  
The United States ◽  
Pension Funds ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Defined Contribution Plans ◽  
State And Local Government ◽  
State And Local

ABSTRACT Both the business media and the popular press have emphasized the underfunding problems associated with pension funds that are set aside for state and local government workers, a group that also includes teachers and professors at state-affiliated colleges and universities. The realization that pension funds are typically underfunded stems from the fact that the accounting standards associated with state and local government employee pension funds have led to greater transparency since 2011. This paper examines, explains, and interprets the historical development over the last 70 years of accounting standards for state and local government pension funds in the United States. Changing accounting standards, along with economic and social change, have led to consequences such as employers transforming their pension programs to avoid substantial costs and significant liabilities, for example by changing from defined benefit to defined contribution plans.

The impact of employer-delayed deposits on plan participant wealth

2016 ◽  
Vol 42 (12) ◽  
pp. 1171-1179
Author(s):  
Jeffrey Scott Jones
Keyword(s):  
Design Methodology ◽  
Defined Contribution ◽  
Regulatory Oversight ◽  
Content Type ◽  
Defined Contribution Plans ◽  
Economic Significance ◽  
History Of ◽  
Defined Contribution Plan ◽  
The Impact ◽  
Primary Contribution

Purpose The purpose of this paper is to examine the impact of employer-delayed deposits to defined contribution plans on plan participant wealth. The history of regulatory oversight on the obligations of employers to remit deposits to defined contribution plans on behalf of employees is discussed. In light of these regulations, the paper discusses and examines situations in which employers may legally delay the deposit of employee contributions to a defined contribution plan and how the existence of various calendar anomalies may impact the returns of plan participants. Design/methodology/approach Simulated equity portfolios over the period 1985-2014 are created to determine the economic significance of possible delays in plan deposits on the accumulated wealth of plan participants. Findings The findings suggest that in situations where employees are paid monthly at the end of the month, it is always to their benefit to have their funds deposited as soon as possible. However, for employees paid weekly at the end of the week, a slight delay (one to three days) in the deposit of funds by the employer may actually be beneficial for the employee, particularly if the employee invests heavily in small and mid-cap stocks. Originality/value This is the first paper to explicitly study the impact of an employer’s timing of deposits to a defined contribution plan on the accumulated wealth of plan participants, and is thus the primary contribution of the paper.

Practical Applications of Active Management in Defined Contribution Plans

2020 ◽  
Vol 8 (2) ◽  
pp. 1.10-4
Author(s):  
Gerald W. Buetow ◽  
Bernd Hanke ◽  
Maxim Zagonov
Keyword(s):  
Active Management ◽  
Defined Contribution ◽  
Practical Applications ◽  
Defined Contribution Plans
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