Question

Grensfield, a state in Markova, is struggling to allocate sufficient financial resources to its employee pension funds. To fulfill its obligations to the pensioners of the state, Grensfield needs to raise funds to provide the promised pension benefits. In this case, which of the following actions by Grensfield to raise funds is likely to receive the most support from the public?

a. Coupling employee contribution plans with tax exemption benefits
b. Banning all types of labor unions
c. Doing away with employee stock ownership plans (ESOPs) and 401(k) plans
d. Requesting extensive employee involvement in defined contribution pension plans

Answer 1

The action by Grensfield State that is likely to receive the most support from the public is:

a. Coupling employee contribution plans with tax exemption benefits

Step-by-step explanation:

The employees of Grensfield State, including the public, would support pension contribution plans that are coupled with tax exemption benefits. The exemption benefits make contribution plans attractive to the workers. Engaging in any of the other three actions will not solve the pending problem nor win the support of the public to the state government's plans.