Section 1. Key vocabulary. Exercise 1. Match the words with their corresponding definitions.

Exercise 1. Match the words with their corresponding definitions.

to retire pension plan

pension pension rights

vesting private pension (personal pension)

retirement contributory pension plan

contribution non-contributory pension plan

a. a pension plan into which the employee and the employer both make payments;

b. a system by which an employer, insurance company etc. provides workers with a pension after they have made regular payments to them over many years;

c. an amount of money paid regularly by a government, company or financial institution to someone who is officially considered to be too old or too ill to earn money by working;

d. a pension that someone arranges for themselves with an insurance company, or that is arranged for them by a broker;

e. to stop work at the end of your working life;

f. the act of leaving a job because you have reached the end of your working life, or the period of your life after you do this;

g. the right that someone has to receive a pension from a company from the government, especially when they stop work at a particular age;

h. the right of a worker to receive a pension from the company they work for;

i. a regular payment made to the government by an employee and their employer so that the employee has the right to receive money from the government when they are ill or unemployed;

j. a pension plan into which only the employer makes payments, not the employee.

Exercise 2. Read and translate the text.

Pension Plans and Pension Rights.

Pension and retirement plans, which provides a source of income to people who have retired, represent money paid for past services. Private pension plans can be funded entirely by the organization or jointly by the organization and the employee during the time of employment. Plans requiring employee contributions are called contributory plans; those that do not are called non-contributory plans. Funded pension plans are financed by money that has been set aside previously for that specific purpose. Nonfunded plans make payments to recipients out of current specific purpose. The most prevalent form of pension plan in the U.S. industry is the defined benefit plan. Under a defined benefit plan, the employer pledges to provide a benefit determined by a definite formula at the employee’s retirement date. The other major type of retirement plan is the defined contribution plan, which calls for a fixed or known annual contribution instead of a known benefit.

An inherent promise of security in some form exists in every pension plan. However, if the pension benefits are too low or the plan is seriously underfunded, this promise of security is breached, and employees who have spent most of their working lives with companies that have pension plans do not receive an adequate - or any, in some cases - pension.

Another problem involves the vested rights of employees. Vesting refers to the rights of individuals to receive, if they should leave the organization prior to retirement, the dollars paid into a pension or retirement fund by their employer. For example, a vested employee can receive, at some later date, the funds invested by the employer. If not vested, the employee cannot receive the fund paid by the employer. A frequent approach is deferred full vesting, in which an employee, on meeting certain age and service requirements, enjoys full vested rights. A similar approach, called deferred graded vesting, gradually gives the employee an increasing percentage of benefits until the age and service requirements for full vesting are met.

Vesting requirements historically have caused problems for both employees and employers. In many old plans, the employee who was terminated or quit before retirement age did not receive any pension benefits regardless of the number of years worked under the pension plan or how close retirement was. Even under plans that did provide vesting rights, the requirements were strict in terms of length of service. Requirements for vesting are often made stringent by employers in an effort to keep employees from leaving the organization, at least until their rights have become fully vested. On the other hand, employers have experienced the problem of employees quitting after they have been vested in the pension plan in order to draw out the funds credited to them. To counteract this, employers have incorporated provisions in their pension plans stating that funds other than those contributed by the employee will not be distributed until the employee reaches a certain age, even if he or she has left the organization.

Reretirement Planning.

A benefit that has recently evolved is pre-retirement planning. The purpose of such planning program is to help employees prepare for retirement, both financially and psychologically. At the most basic level, pre-retirement planning provides employees with information about the financial benefits they will receive upon retirement. Social security, pensions, employee stock ownership, and health and life insurance coverage are usually discussed. Other programs go beyond financial planning and into such topics as housing, relocation, health, nutrition, sleep, exercise, part-time work, second careers, community service, recreation, and continuing education.

The rapid pace of change in today's world accentuated by volatile inflation rates and uncertainty concerning social security has enhanced the need for some type of pre-retirement planning. This need is not expected to be diminished in the near future.

Exercise 3. Give the definitions to the words in italics.

1. Pension and retirement plans represent money paid for past services.

2. If you retire at 55 you can expect your pension to be half the size it would be at age 65.

3. The law changed in 1998 to allow individuals to opt out of their company plans and start a personal pension.

4. In this country, women can retire at 60 and men at 65.

5. Mr. Baker is 65 next month, the usual retirement age for Air Products officers.

6. Britain is required to equalize pension rights between men and women.

7. Pension plans are moving towards quicker vesting for employees of five years’ service or more.

8. To qualify for the full basic pension, someone would need to have paid National Insurance contributions for most of their working life.

Exercise 4. Complete the passage using the following words and phases:

service, benefits, employees, work force, pension plan, average earnings, retirement benefits, private pension plan, hourly paid employees.

The 1987 survey reported by the U. S. Chamber of Commerce found that over 85 percent of the participants had 1....... This can be compared with the fact that less than one-sixth of the nonagricultural 2..... was covered by 3......... prior to 1948. Ninety-one percent of the pension plans reported in the 1986 Hay/Huggins Benefits Comparison were defined benefits plans and 8 percent were defined contribution plans.

Defined benefits plans make up overwhelming majority of pension plans and have a specified formula for calculating 4.... The most popular approach has been the final-average pay plan, in which the 5...... is based on average earnings in the years, generally two or five, immediately preceding retirement. The actual benefit sum is then computed as a function of the person’s calculated 6...... and years of 7.... In another common approach, the flat-benefit plan, all participants who meet the eligibility requirements receive a fixed benefit regardless of their earning.

Plans affecting salaried employees usually use the final-average plan. Plans limited to 8......... traditionally used the flat-benefit plan. Where the hourly and salaried 9... are both affected, a final-average pay formula may be modified to provide a minimum dollar benefit for participants in the lower pay classifications.

Exercise 5. Match the words and phrases with their corresponding definitions.

1. to fund

2. recipient

3. fund

4. income

5. income support

6. to quit

7. to invest

8. rights

a. to leave a job

b. the freedom and advantages that everyone should be allowed to have

c. money that is earned from doing work or received from investments

d. a sum of money saved, collected or provided for a particular purpose

e. a person who receives something

f. to put money into something to make a profit

g. to pay for

h. money that is paid by the government to people who have no income or very low income

Exercise 6. Complete the sentences using the phrases (1-8) from Exercise 5. Change the form of the words where necessary.

1. New legislation is gradually taking away worker’s....

2. Many single mothers are on.......

3. The company has agreed to... my trip to Australia.

4. This latest cut in government spending will affect income support... and their families.

5. Would you... your job if you inherited lots of money?

6. The institute will... 5 million in the project.

7. In the U. K., the pension... assets account for 70 % of personal sector saving.

8. Average... have risen by 4.5% over the past year.

Exercise 7. Translate into English.

A. 1. Эта организация финансирует строительство нового развлекательного центра.

2. Он получает пособие по безработице.

3. Он при деньгах, т.к. он получил наследство.

4. Часть получаемой прибыли идет в фонд заработной платы.

5. Его месячный доход составляет $1500.

6. Он живет не по средствам.

7. Он ушел со службы.

8. Ему сообщили о том, что он уволен.

9. Он вложил все свои деньги в это предприятие.

10. У всех есть право на труд и на отдых.

11. Вы должны отстаивать свои права.

B. 1. Пенсия – это регулярное денежное пособие, выплачиваемое государством лицам после достижения пенсионного возраста.

2. Пенсия – регулярные денежные выплаты, предоставляемые государством при достижении определенного возраста, наступлении инвалидности, в случае потери кормильца, а также за выслугу лет и особые заслуги перед государством.

3. Права на получение пенсий – одна из главных форм личного благосостояния в современном обществе.

4. Значение прав на получение пенсий имеет отношение к страховой стоимости ожидаемых пенсионных поступлений, обусловленных возрастом и другими индивидуальными особенностями пенсионеров.

5. Основанная на взносах пенсионная программа – программа пенсионного обеспечения, участники которой должны делать взносы в пенсионный фонд.

6. Это, как правило, происходит в форме регулярных перечислений определенного процента заработной платы.

7. При пенсионной программе, на предусматривающей взносов участников, все затраты ложатся на плечи руководителя.

8. Пенсионная программа без предварительных взносов – пенсионная программа, в соответствии с которой от участников не требуется делать взносы, соответствующие величине их пенсий, если взносы полностью осуществляются их работодателями.

9.Пенсионную программу без предварительных взносов следует отличать от пенсионной программы за счет взносов работника и предпринимателей, когда от участников требуются взносы, соответствующие части величины их пенсий.

10. Отставка – это окончательный уход с военной или гражданской государственной службы.

Дата добавления: 2015-10-02