SaintLeo HRA545 Module 8 Discussion Latest 2019 May

HRA545 Personnel Law and Ethics

Module 8 Discussion

Many companies have admitted they cannot financially support the pension system which they have negotiated with their employees.

ERISA (Employee Retirement Income Security Act of 1974) was introduced in response to unfair practices by employers. Numerous pension funds were under-funded. Therefore, when employees retired, there was no guarantee that the money would be there for their pensions. This situation occurred often in companies that went out of business. ERISA imposed minimum funding standards in response to this problem. Companies also had inconsistent rules regarding age and years of service.

At this point in your studies, do you feel that the employer-employee relationship is balanced, or does one side have an advantage over the other?