Assignments - Post Retirement Benefits

1. Discuss both the similarities and differences between current GAAP and IFRS pension accounting standards. Do you think that converged standards between FASB and the IASB would improve the problems that have occurred in pension plans during out economic crisis and prevent the underfunded status that currently exists in so many plans? If you could think of one change that might strengthen the US pension system as it currently exists, what would you change.

2. Do you expect more companies to collapse under the weight of enormous increases in pension funding due to the extraordinary decreases in fund values? If this happens, what impact can you see this having on an already strained economy, and on the futures of retirees? Talk about this in the context of least two components of the economy.

3. What do you think your future retirement benefits might look like? Do you think Social Security will be available for you-if yes, how do you think it will be funded and if no, what will replace it? (This will be interesting based on a very diverse age group we have in this class!)

4. Why are companies switching to Cash Balance Plans, from traditional pension plans?