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The Pros And Cons Of Central States Pension Cuts

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More than 40 years ago a pension was the best form of assurance for a financially happy life after retiring. In 2016, the Central States Pension Fund forecasted that it will run out of money in the near future. To potentially stop the fund from running out of money, it has proposed cuts to current and future pension payments. These cuts will affect not only thousands of workers, but could affect millions. As the director of the Central States Pension Fund it would be best to push for cuts on pension payments. When the nation first learned of possible cuts it caused an uproar. Many felt betrayed and others felt as if all their hard work was useless. By cutting the pension payments, the Central States Pension Funds will be breaking a promise …show more content…

These cuts are ethically right, but also ethically wrong because they go against the principle of utilitarian benefits and religious injunction. Utilitarian benefits is set to make sure that the greatest good is done for the greatest number of people. To take away pension benefits, the fund is putting workers in a financially unstable position. This is unethical because it is hurting instead of helping a lot of workers. Not only would the benefits cuts affect thousands, but could also influence other pension plans to cut benefit which in result would hurt millions of workers. The Central States Pension Fund has a lot of influence, because it is a major plan. By cutting benefits, other plans will also find it acceptable to cut benefits. The number of people affected would grow from thousands to millions. This in turn hurts the greatest number of people instead of helping them. By hurting thousands workers, the fund is also doing an action that is unkind. This goes against the ethical principle of religious injunction. Religious junction is to never take an action that is unkind to another. The pension cuts are unkind, because it breaks the promise that Central States Pension Fund had established with their stakeholders. They had promised pension holders that when they retired they would receive all the money they had taken out over the years for their pension. Pension holders feel betrayed, because they are now losing years of hard work and hope for a financially stable life after retirement. The action of cutting benefits in unkind, because it breaks a promise to the pension holders. The ethical principles of utilitarian benefits and religious injunction help to show that the Central States Pension Fund proposal of cutting benefits is both ethically wrong and ethically

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