#Distribution: -

[thellawtoknow]

Contributory Pensions: Concept and Importance

Definition and Mechanism of Contributory Pensions Definition: The Core Principle The Mechanism of Contributory Pensions1. Accumulation Stage 2. Fund Management Stage 3. Distribution Stage Variations in Structure and RegulationMandatory vs. Voluntary Contributions Tax Advantages Employer Incentives An Example of Contributory Pensions in Practice Advantages of Contributory Pension Schemes Challenges and Criticisms The Role of Governments and Policy Interventions Future Perspectives Conclusion The Concept and Importance of Contributory Pensions A contributory pension scheme represents a structured approach to retirement savings, wherein both employees and employers (or individuals alone) make regular financial contributions to a pension fund throughout the employee's working life. This essay explores the concept, advantages, and challenges associated with contributory pensions, emphasizing their role in securing financial stability in old age and fostering economic resilience.

Definition and Mechanism of Contributory Pensions Contributory pension systems are structured financial arrangements designed to provide individuals with a stable income post-retirement. These systems are characterized by the requirement that participants actively contribute to their pension funds during their working years. This section delves deeper into the principles, operations, and variations in contributory pension systems to explain how they function and why they are an integral part of retirement planning. Definition: The Core Principle At its core, a contributory pension system is based on the principle of shared responsibility between individuals and, often, their employers or the government. Participants allocate a portion of their current earnings to a pension fund, which is typically managed by professional entities or government agencies. This fund is designed to grow over time through regular contributions, compound interest, and investment returns. Upon reaching retirement age, participants access these savings in the form of regular payments (annuities) or lump sums, providing financial security when they are no longer earning a regular income. The Mechanism of Contributory Pensions The operation of contributory pension systems can be divided into three primary stages: accumulation, management, and distribution. 1. Accumulation Stage During the working years, participants regularly contribute to their pension fund. Contributions are usually deducted directly from an employee’s salary, ensuring consistency and minimizing default risks. The specifics of the accumulation process include: - Employee Contributions: A fixed percentage of the individual’s earnings is allocated to the pension fund. For instance, an employee may contribute 5-10% of their gross salary. - Employer Contributions: In many contributory systems, employers match or supplement employee contributions, doubling the rate of accumulation. This not only incentivizes employee participation but also builds a larger retirement corpus. - Self-Employment Contributions: For self-employed individuals, contributions are voluntary or mandated by regulatory authorities. These individuals bear the sole responsibility for contributing to their pension fund. Contributions are often tax-advantaged, meaning they are deducted from pre-tax income or are eligible for tax rebates, further incentivizing savings. 2. Fund Management Stage Once contributions are made, they are pooled into a pension fund managed by professionals or regulatory entities. The effectiveness of this stage determines the long-term viability and growth of the fund. Key aspects of fund management include: - Investment Diversification: Pension funds are invested in a mix of financial instruments, such as stocks, bonds, real estate, and government securities. The aim is to balance risk while ensuring steady growth. - Compound Interest Growth: Contributions benefit from compound interest over time, significantly amplifying the fund's value as the years progress. - Risk Mitigation: To minimize risks, fund managers often adhere to strict guidelines, such as capping exposure to high-risk investments or ensuring a balanced portfolio. - Government Oversight: In most jurisdictions, regulatory frameworks ensure transparency, accountability, and security in the management of pension funds, protecting participants’ interests. 3. Distribution Stage Upon reaching the specified retirement age, participants begin to receive benefits. The method of disbursal varies depending on the system’s structure and the individual’s preferences: - Annuities: Regular monthly or yearly payments that continue for the remainder of the retiree’s life. Some plans offer inflation-adjusted annuities to maintain purchasing power. - Lump-Sum Payments: In some systems, retirees can opt to withdraw their entire savings at once, often for large expenditures or investments. - Hybrid Models: A combination of lump-sum withdrawals and regular annuities to balance immediate needs with long-term income security. Variations in Structure and Regulation Contributory pension systems are not uniform and are adapted to suit the economic, cultural, and regulatory contexts of different regions. Common features and variations include: Mandatory vs. Voluntary Contributions - Mandatory Systems: In many countries, participation in contributory pension schemes is legally required for employees and employers. This ensures universal coverage and reduces the risk of old-age poverty. - Voluntary Systems: Self-employed individuals or workers in informal sectors often contribute voluntarily. Governments may encourage participation by offering incentives, such as tax deductions or co-contributions. Tax Advantages Tax policies play a critical role in contributory pension schemes. Contributions are often tax-deductible, reducing the individual’s taxable income. Similarly, the growth within the pension fund is typically exempt from capital gains tax, and in some cases, payouts are taxed at a reduced rate or exempt entirely. Employer Incentives Governments often incentivize employers to contribute to pension funds by offering subsidies or tax breaks. For example, employers who participate in pension programs may receive reduced payroll taxes or other financial benefits. An Example of Contributory Pensions in Practice Consider a contributory pension system where: - An employee contributes 5% of their monthly salary. - The employer matches this contribution with an additional 5%. - The pension fund invests in diversified assets that yield an annual return of 6%. Over a 30-year career with consistent contributions and compound interest, the accumulated fund can grow significantly, ensuring a comfortable retirement income. This model demonstrates the cumulative power of joint contributions, disciplined savings, and professional fund management. The definition and mechanism of contributory pension systems embody a partnership between individuals, employers, and governments to secure financial stability in retirement. By pooling contributions, leveraging investment growth, and adhering to regulatory standards, these systems transform small, consistent savings into substantial retirement funds. Their adaptability across jurisdictions underscores their importance as a cornerstone of modern financial planning, balancing individual responsibility with collective support. Advantages of Contributory Pension Schemes - Financial Security in Old Age A contributory pension ensures that individuals have a reliable source of income after retiring from active employment. This reduces dependence on family members or state welfare systems, fostering dignity and self-reliance. - Encouragement of Savings Culture By requiring regular contributions, these schemes inculcate a culture of long-term financial planning. This disciplined saving mechanism benefits individuals by ensuring financial stability even in unforeseen circumstances. - Employer-Employee Relationship Employers who match employee contributions often cultivate stronger relationships with their workforce. Such benefits enhance job satisfaction and employee loyalty, fostering a productive work environment. - Economic Stability On a macroeconomic scale, contributory pension funds serve as significant pools of capital for investment. Managed prudently, these funds can finance infrastructure projects, stabilize financial markets, and spur economic growth. - Inflation Adjustment Many modern contributory pension plans are designed to adjust payouts to reflect inflation, ensuring that retirees maintain their purchasing power over time. Challenges and Criticisms Despite their many advantages, contributory pension schemes face several challenges: - Affordability and Coverage Low-income workers or those in informal employment sectors often struggle to contribute regularly, leading to inadequate retirement savings. This issue underscores the need for inclusive policies and flexible contribution structures. - Investment Risks Pension funds are typically invested in financial markets, making them vulnerable to market volatility. Economic downturns or mismanagement of funds can jeopardize retirees' savings. - Longevity Risks As life expectancy increases globally, pension funds must support retirees for longer periods. This places additional pressure on fund sustainability and necessitates regular adjustments to contribution rates and payout structures. - Employer Non-Compliance In some cases, employers may fail to remit their share of contributions, especially in countries with weak regulatory oversight. Such practices can compromise the effectiveness of contributory pension schemes. - Transition Challenges In nations transitioning from non-contributory to contributory pension systems, individuals nearing retirement may not have sufficient time to accumulate adequate savings, necessitating supplementary measures. The Role of Governments and Policy Interventions Governments play a pivotal role in ensuring the success of contributory pension systems. Key interventions include: - Regulation and Oversight: Establishing robust regulatory frameworks to monitor fund management, prevent fraud, and ensure transparency. - Incentives: Providing tax breaks or subsidies to encourage participation, particularly among low-income earners. - Public Education: Enhancing awareness about the benefits of contributory pensions to promote enrollment and understanding. - Support for Informal Sectors: Creating tailored solutions to extend pension benefits to informal workers and marginalized groups. Future Perspectives The demographic shifts toward aging populations in many parts of the world underscore the increasing importance of contributory pensions. Innovations in digital finance and artificial intelligence offer promising avenues for improving fund management, increasing accessibility, and personalizing pension plans to meet diverse needs. Moreover, the integration of sustainable investment principles into pension fund management can align financial goals with broader societal objectives, such as combating climate change and promoting social equity. Conclusion Contributory pension schemes are an indispensable tool for securing financial stability and promoting economic well-being, both at the individual and societal levels. While challenges such as coverage gaps and investment risks persist, strategic interventions by governments, coupled with technological innovations, can enhance the inclusivity and sustainability of these systems. By fostering a culture of shared responsibility and disciplined saving, contributory pensions not only protect individuals in their twilight years but also contribute to broader economic resilience. Read the full article

[gravitascivics]

CRITIQUE OF CRITICAL THEORY, I

Up to this point, this blog has shared a series of postings that inform readers of a construct – critical theory – from the perspective of someone who supports it.  That is, this blogger has been attempting to place himself in that frame of mind as best he can – that’s right, he’s not a critical pedagogue.  But with this posting, this blogger reclaims this platform and shares his ideas and evaluative notions concerning that construct.   What follows is a critique.  

Often the term critique is cast as a negative evaluation – sharing what’s wrong with something.  But more accurately, and as used here, a critique can offer a viewpoint that is quite positive in its ideas or claims.  With that proviso, this posting will review what this blogger likes about critical pedagogy before reviewing his opinions about how the construct falls short from what is needed.

         He is gratified that critical pedagogy – along with critical theory – places an emphasis on the disadvantaged.  In addition, he finds it useful that this construct dethrones the centrality of individualism and that it questions the natural right’s assumption concerning the rationality of people.  Below, in this posting, is a summary explanation of each of these judgements.

         But first, there is some context to review.  Here are some statistics which give credence to what the former senator, John Edwards, argued in his abbreviated run for president some years ago.  That is, he claimed that there are two Americas:  in one, there are the rich and in the other, there are the rest.

         Upon reflection, this is another way to inform people about a Marxian observation.  Marx stated that there are the “haves and have nots.”  America has, in its popular view, claimed that there is a third group, the “have-a-littles,” or what is usually called the middle class. But this third group is being diminished; some claim it is becoming extinct.  The belief here is that the nation is not there yet, but there are numbers that strongly suggest that the nation is headed to such a dichotomy as Edwards and Marx claim.

         According to CNBC, “The top 1% owned a record 32.3% of the nation's wealth as of the end of 2021 …  The share of wealth held by the bottom 90% of Americans, likewise, has declined slightly since before the pandemic, from 30.5% to 30.2%.”[1]    In 2014 the following distribution was reported: top 1% = 35%, next 4% = 27%, next 5% = 11%, next 10% = 12% OR stated differently:  Upper Middle 20% of the population = 11% of the wealth, Middle 20% = 4%, and Bottom 40% = less than 1%.[2] ��So, from the middle class level to less than 1% level (80% of the population),  Americans share less than 16% of the national wealth.

Compare that to 1976 when the top 1% had 23.9% percent of the national wealth[3] and one senses a trend toward the elimination of the middle class as the very rich are absorbing more and more of the national wealth.  This blogger particularly thinks the following statistic from the ought years gives a telling picture of the imbalance: The top .01 percent of income earning households, which numbered about 11,000 households, earned more money than the lowest 25,000,000 households.

And with those numbers one can easily ask: is the nation starting to look like a developing country in terms of income and wealth distribution?  The effects of the country’s economic woes – be they intense during downturns, or less during times of prosperous growth – prove to be overwhelming to the disadvantaged members of American society.

Of course, financial imbalances within the citizenry – experience demonstrates – have negative consequences.  Crime occurs more often in low-income areas.[4]  Common sense, given the price of medical care, tells one that the incidence of disease or spread of it is more apt to occur in low-income areas.  And again, there is research to back up this claim.[5]  Low income and low levels of wealth can be associated with many social ills. Therefore, one can easily reach the conclusion that ill distribution of both affects the health of societies including that of the US.

Ironically, not only do Marxist and/or critical theory writers make these claims, but elite theorists agree, the difference being that these last commentators find little wrong with that reality.  Be that as it may, critical pedagogues make it their point to highlight these conditions.  And they should be highlighted, and federation theorists and their supporters (like this blogger) would agree in that their trump value is societal health or welfare.  

Critical theory also draws one to the collective nature of social reality.  The reconstructionist advocates believe meaningful civics as being a study in how alliances need to be formed in order to accomplish the transformation which they seek.  By doing so, critical pedagogues draw upon the curriculum and, therefore, the student away from the tacit message that all social accomplishments revolve around the individual.  This positive quality is not positive because it bolsters collectivist views, but because it points out an important reality.

That is, the construct questions the bias that holds that social policy should be aimed at heightening the role of individuals and the sanctity of individual rights.  Again, as this blog pointed out when reviewing the natural rights construct, that sanctity of the individual is that construct’s ultimate value and is judged here as a basis for many of the nation’s ills – most particularly, in how it feeds the nation’s current polarized politics.  

How?  By encouraging people to demand societal benefits from the perspective of individual aspirations, shunning the claims of groupings or other arrangements. From more self-centered needs, communal perspectives are lost and with that loss is that aspect of humanity that recognizes the need for such commonality.  The lacking humanity would be insensitive to suffering and injustice. When trampled, these concerns are dismissed or degraded at the cost of making all of Americans less human.

The last bit of positive critical thought this blogger finds appealing is how its advocates have introduced a practical way for people who are concerned over justice, or the lack of it, to study related issues without employing scientific approaches.  The prevailing mode of study calls for behavioral protocols.  Instead, critical theorists – including critical pedagogues – seek richer modes of study that do not limit themselves to reductionist analysis of correlated occurrences of abstracted factors or variables.  

Yes, there is a place for such studies, but they should not be the sole method of doing research.  Since critical researchers’ initial attempts at having American schools consider not just behavior, but focus their study on consciousness and subconsciousness, this more encompassing approach to the study of human affairs is no longer limited to only leftist academics. This shift is becoming more popular among educational and other researchers.   This might not include studies by formal business organizations, but more so among other bureaucratic entities such as school districts.

To give readers a more concrete sense as to what business thinking has been, here is what the conservative pundit, David Brooks, writes regarding the current state of what that sort of thinking has been:

 [W]hen [Lionel Trilling] noted that so long as politics or commerce “moves toward organization, it tends to select the emotions and qualities that are most susceptible to organization. … As a result, “it drifts toward a denial of the emotions and the imagination. And in the very interest of affirming its confidence in the power of the mind, it inclines to constrict and make mechanical its conception of the mind.”

Rationalism looks at the conscious mind, and assumes that that is all there is. It cannot acknowledge the importance of unconscious processes, because once it dips its foot in that dark and bottomless current, all hope of regularity and predictability is gone. Rationalists gain prestige and authority because they have supposedly mastered the science of human behavior. Once the science goes, all their prestige goes with it.[6]

 In short, where broader views of social study exist there now exists a real challenge to positivist studies that rely exclusively on measuring behavior as the sole methodology to the scientific study of human affairs. A lot of credit should be extended to critical theorists and, in education, to critical pedagogues for this shift.  But in corporate centers, behavioral methods still rule the roost.

And that is what this blogger believes are positive elements of the critical theory construct.  The next posting will begin to describe and explain what this blogger finds wrong with that construct.

[1] Robert Frank, “Soaring Markets Helped the Richest 1% Gain $6.5 Trillion in Wealth Last Year, According to the Fed,” CNBC (April 1, 2022), accessed May 10, 2023, https://www.cnbc.com/2022/04/01/richest-one-percent-gained-trillions-in-wealth-2021.html#:~:text=The%20top%201%25%20owned%20a,from%2030.5%25%20to%2030.2%25.

[2] Wealth Inequality in the United States,” Wikipedia (n.d.), access May 10, 2023, https://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States#:~:text=The%20accumulation%20of%20wealth%20enables,bottom%2050%25%20held%202.6%25.

[3] Josie Green, “How Wealthy Was the 1% Each Year Since 1976,” 24/7 Wall Street (February 10, 2022), accessed May 10, 2023, https://247wallst.com/special-report/2022/02/10/how-wealthy-was-the-1-each-year-since-1976/2/.

[4] For example, Lilik Sugiharti, Rudi Purwono, Miguel Angel Sequivias, and Hilda Rohmawati, “The Nexus between Crime Rates, Poverty, and Income Inequality:  A Case Study of Indonesia,” Economies/MDPI (2022), accessed May 10, 2023, file:///C:/Users/gravi/Downloads/economies-11-00062-v2.pdf.  This article’s authors offer this study as exemplary of the general claim being made here.

[5] For example, Gabriela R. Oates, Bradford E. Jackson, Edward E. Patridge, Karen P. Singh, Mona N. Fouad, and Sejong Bae, “Sociodemographic Patterns of Chronic Disease,” American Journal of Preventive Medicine (January 2017), accessed May 10, 2023, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5171223/.

[6] David Brooks, The Social Animal:  The Hidden Sources of Love, Character, and Achievement (New York, NY: Random House, 2011), 227 (emphasis added).

[longreads]

How Concerned Citizens Drove a Neo-Nazi Out of Rural Maine

Christopher Pohlhaus planned to build a fascist training compound in the woods of rural Maine. The local journalists, veterans, lumberjacks, and policymakers weren't having it.

Pohlhaus, 37, is a former U.S. marine, an itinerant tattoo artist, and a hardcore white-supremacist influencer. He is loud and hostile, and proud to be both. His voice is pitched surprisingly high, and he has a slight Southern drawl. He has a large body and small bald head; a blue-black tattoo crawls up the right side of his face, from his chin to his forehead. Over the years, Pohlhaus has collected thousands of social media followers, who know him by his nickname: Hammer.

Hammer had been living in Texas for a few years when, in March 2022, he bought the land in Maine. He told his followers that he was going to use it to build a haven, operational center, and training ground for white supremacists.

Check out our excerpt of The Atavist’s latest blockbuster story. 

[389]

PORTO ROCHA

[nanaluvbug]

🧀🥪🌶️🥭 The Ravening War portraits  🧀🥪🌶️🥭

patreon * twitch * shop  

[ID: a series of digitally illustrated portraits showing - top left to bottom right - Bishop Raphaniel Charlock (an old radish man with a big red head and large white eyebrows & a scraggly beard. he wears green and gold robes with symbols of the bulb and he smirks at the viewer) Karna Solara (a skinny young chili pepper woman with wavy green hair, freckled light green skin with red blooms on her cheeks. she wears a chili pepper hood lined with small pepper seeds and stares cagily ahead) Thane Delissandro Katzon (a muscular young beef man with bright pinkish skin with small skin variations to resemble pastrami and dark burgundy hair. he wears a bread headress with a swirl of rye covering his ears and he looks ahead, optimistic and determined) Queen Amangeaux Epicée du Peche (a bright mango woman with orange skin, big red hair adorned with a green laurel, and sparkling green/gold makeup. she wears large gold hoop earrings and a high leafy collar) and Colin Provolone (a scraggly cheese man with waxy yellow skin and dark slicked back hair and patchy dark facial hair. he wears a muted, ratty blue bandana around his neck and raises a scarred brow at the viewer with a smirk) End ID.)

[70sscifiart]

One of my favorites by Paul Lehr, used as a 1971 cover to "Earth Abides," by George R. Stewart. It's also in my upcoming art book!

[taizooo]

もともとは10年ほど前にTumblrにすごくハマっていて。いろんな人をフォローしたらかっこいい写真や色が洪水のように出てきて、もう自分で絵を描かなくて良いじゃん、ってなったんです。それで何年も画像を集めていって、そこで集まった色のイメージやモチーフ、レンズの距離感など画面構成を抽象化して、いまの感覚にアウトプットしています。画像の持つ情報量というものが作品の影響になっていますね。

映画『きみの色』山田尚子監督×はくいきしろい対談。嫉妬し合うふたりが語る、色と光の表現｜Tokyo Art Beat

[layla-keating]

#thistension

XO, KITTY — 1.09 “SNAFU”

[nevver]

No one wants to be here and no one wants to leave, Dave Smith (because)

[foodffs]

Noodles with Lamb Sauce (Laghman, 新疆拌面) Xinjiang laghman features chewy noodles served with a bold and rich lamb and tomato sauce that is bursting with flavor.

Recipe: https://omnivorescookbook.com/recipes/uyghur-style-noodles-with-lamb-sauce

[lesserknownbots]

CJ from Hello World (MSPFA) by phasedsun?

[shitakeo33]

よく「発明は1人でできる。製品化には10人かかる。量産化には100人かかる」とも言われますが、実際に、私はネオジム磁石を1人で発明しました。製品化、量産化については住友特殊金属の仲間たちと一緒に、短期間のうちに成功させました。82年に発明し、83年から生産が始まったのですから、非常に早いです。そしてネオジム磁石は、ハードディスクのＶＣＭ(ボイスコイルモーター)の部品などの電子機器を主な用途として大歓迎を受け、生産量も年々倍増して、2000年には世界で1万トンを超えました。

世界最強「ネオジム磁石はこうして見つけた」（佐川眞人 氏 ／ インターメタリックス株式会社 代表取締役社長） | Science Portal - 科学技術の最新情報サイト「サイエンスポータル」

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PORTO ROCHA

[theroyalweekly]

HRH The Princess of Wales in Southport today, on her first engagement since completing chemotherapy. It’s so good to see her!❤️ --

[kithtaehyung]

AGUST D : DAECHWITA (大吹打) & HAEGEUM (解禁)  ⤷ movie posters | ig ; twt (click for hi-res)

[magicshop]

You, who gave me their hand when I fell, now I'll hold it for you.