Modern Day Pension Plan Memo Paper
How would you guide a company on creating pension plans and the pension plan process? How does this differ from the pension plans that Warren Buffet was talking about in his memo during the 1970s (attached file)?
Some topics to talk about:
1) continuous inflation (Buffet mentions in his paper, “I urge caution in making pension benefit promises subject to dramatic escalation through substantial attribution in the purchasing power of money”)
2) how the idea of a pension relies on every generation to follow the foot-steps of a previous generation so money is generated to fund pension plans (ie. Social Security) and how the idea is now obsolete
3) how pension plans were affected due to the COVID-19 pandemic (ie. impact of the American Rescue Plan Act of 2021), how WFH (work from home) will shape the future workforce and affect pension plans
4) how pension plans are affected by a company’s employee turnover
5) Pension Plan Contribution Limits for 2020 and 2021 (ie. (1) Defined Benefit Plans; (2) Defined Contribution; (3) 457 Elective Deferrals or 401(k), 403(b); (4) Key Employee or “Top Heavy”; (5) SEP Compensation; (6) SIMPLE IRA Plans; (7) Highly Compensated Employer)
6) other factors in why this generation (millennials, generation Z) affect pension plans
