Should Every Able-Bodied Citizen Do Military Service

Should Every Able-Bodied Citizen Do Military Service? Many countries in the world have already abolished mandatory conscription to the military forces, some don’t have armed forces at all, while there are still nations where this conscription is obligatory. Everything depends on the significance of the country on the international level, the influence it has on the other countries, as well as the plans and ambitions of each government. I live in one of the countries where conscription is obligatory and I can but say that the majority of men are not satisfied with this reality. Some of them are not ready physically, others mentally. They are ready to do anything just not to serve in the army. I’ve heard so many stories of how they escaped from this duty that I can definitely say that obligatory conscription doesn’t bring any good but one – it teaches people to use their imagination and acquaintances to stay safe and sound at home. At the same time, there are strong-body and strong-minded people who are ready to do military service for the given period of time, and it doesn’t make them depressed. They know that this service won’t do them any harm and they are ready for it. I am completely sure that they are the ones who have to be conscribed, but for this no obligatory requirements at the country level are necessary. Thus, I believe that only those who feel that military service will do them more harm than good should be conscribed. There is no need of making people suffer and seek the ways to escape their duties. Governments also have to do everything possible in order for people not to be afraid to do military service, that is provide proper living conditions and securing their safety.

Essay on Government - 923 Words

Government Government! You cant live with it! You cant live without it! It is the common cold that everyone dreads. The American Heritage College Dictionary, Third Edition defines government as, The exercise of authority in a political unit in order to control and administer public policy. Websters Desk Dictionary of the English Language defines government as, The political direction and control exercised over a nation, state, community, etc. The common individual might define government as the root of all evil. The thing about government is that no one stops to think about how government came about. Government falls into two categories; monarchy or a republic. A monarchy is a form of government that is always headed by a†¦show more content†¦King Fahad has complete control over its citizens in all aspects pertaining to their country. Laws, punishments, and regulations are in the hands of King Fahad. If the government of a country does not fall into any of these categories, it is a republic. A republic is defined in Websters Desk Dictionary of the English Language as any government in which the supreme power rests in the body of citizens entitled to vote and is exercised by representatives chosen directly or indirectly by them. There are three types of republics; dictatorship, oligarchy, or democracy. A dictatorship is a republic ruled by one individual. Cuba has a dictatorship. Fidel Castro is the main contributor to Cuban society. He oversees his people yet allows his people the right to vote him in or out of office. An oligarchy is another type of republic. This type is ruled by a select few. An example of an oligarchic society would be France. King Louis XV is king but he has a complete parliament to assist him in the law making procedure of France. The third type of republic is a democracy. A democracy is defined as a society ruled by the majority. An example of a democratic republic would be the United States. There are four theories that coincide with government; divine, natural, social compact, and force. The divine theory was developed out of religion. The theory states that government ordained itself from God, and its main purpose isShow MoreRelatedGovernment And State And Government Essay1597 Words   |  7 PagesIntroduction Government and state is like a two sides of a coin. Some political thinkers do not make any distinction between state and government. As a state Bangladesh has experienced different types of government since 1971 including democracy and military government. None of the experience is good for the people of the state. As a form of government democracy has some advantages and also some disadvantages. But in a country like Bangladesh you mostly have to suffer the demerits of democracy.Read MoreRole Of Government In Government1155 Words   |  5 Pagesbehind a government headed by 35 Kikuyu District Commissioners (DCs) of the 41 positions, 5 Kikuyu Provincial Commissioners (PCs) out of the 8 PCs. During his regime, Kenyatta grew very hostile to those who arrayed criticism against his governance policies. For example, one of his allies during the struggle for independence leading to the formation of the new government, J. M. Kariuki, was assassinated under very suspicious circumstances. He had become a critic of the official government corruptionRead MoreGovernment Aid And Government Assistance1235 Words   |  5 Pagesof government assistance. The statistics are alarming. What’s even more alarming is how government assistance has become more of a way of life for some, and a standard of living for others when it should be a short term solution to all. Some people would argue that government assistance is there to help people get back up when they have fallen on hard times. They would also say that without government assistance some people would lose their will to recover from their fall, and that government assistanceRead MoreGovernment Of Florida, A State Government E ssay2339 Words   |  10 PagesThis case study will assess the government of Florida, a state government. It will touch on several important issues such as providing a general overview of how the government functions and what resources it provides, as well as some current issues the State of Florida is facing in government administration. Because the State of Florida is a state government, it tends to â€Å"resemble the national government in composition and organization of their executive branch agencies† (Milakovich, 2013, p. 21)Read MoreThe Work For The Government Essay1449 Words   |  6 Pageswork for the government. Choose 5 reasons given and explain what they are and whether or not they appeal to you. (3 pts) Here are five of the reasons the author gives for working in the government. Stable employment. This is one of the major perks of working for the government, mostly for the federal government. Government employees keep their jobs in many occasions until is their time for retirement. Even though is not something that happens to everybody, in cases where the government has reductionsRead MoreDemocracy and Government853 Words   |  3 Pagessystem of government based on this belief, in which power is either held by elected representatives or directly by the people themselves.† So by the very definition, these governments are enlisted to advocate for the interest of its citizens regardless of gender, race or age. All democracies are government by a specific document which outline the method in which they are run and what rights they protect. 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He also set standards on weights, currency, writing, and law (Beck, pg. 109). He also built roads, and started irrigation projects (Beck, pg. 109). An advantage of his government is that he got things done to help the countryRead MoreLocal Government And Public Government1608 Words   |  7 Pages LOCAL GOVERNMENT Local government is a form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state. The term is used to contrast with offices at state level, which are referred to as the central government, national government, or (where appropriate) federal government and also to supranational government which deals with governing institutions between states. Local governments generally act within powers delegated to them byRead MoreA Report On A Government854 Words   |  4 PagesA government should always be open to criticism, be held accountable for their actions, and be honest when notifying the public of any events. This creates government transparency and allows its citizens to hold their leaders accountable for their actions. In order to create this transparency in today’s society, a technical system must be set in place. This technical system needs to contain government documents which are easily accessible to the p ublic. But, not all documents should be housed in

New Jersey’s Proposals to Cut Health Care Spending Free Essays

string(122) " households could fail to access the life sustaining drugs as well as the related services necessary for positive living\." In virtually every corner of the United States, State governments are grappling with the inevitable challenge of deriving a balanced budget given the outstanding deficits in revenues, a scenario largely precipitated by the financial crisis that has hit the nation. New Jersey is no exception. Indeed, state officials have increasingly found themselves faced with the reality of soliciting sufficient revenues to fund the topmost priority issues, unlike in previous budget allocations. We will write a custom essay sample on New Jersey’s Proposals to Cut Health Care Spending or any similar topic only for you Order Now In an attempt to draw a balanced and fair budget for the 2010 fiscal year, various proposals have been advanced. One of the efforts that can not escape notice is the idea of cutting funding for the state’ FamilyCare. The proposed strategy in realizing such an objective involves freezing the enrollment of parents between 150 and 200 percent of the federal poverty level and the implementation of co-payments for individuals in Medicaid and the AIDS Drug Distribution Program (ADDP) (NJ for Health Care, 2009). Indeed, the budget dilemma facing the state is understandable, given the severe economic conditions. Whereas the idea of cutting monetary allocations on some items would suffice in minimizing the critical budget deficits that are essential in facilitating the advancement of the state’s yearly programs, adopting a rational approach based on critical evaluation reveals the utter need to reconsider the said proposals. In an economy where a significant majority is struggling to meet the high costs of living, the proposal to cut back FamilyCare enrollment of parents is evidently a grave issue that can be described as a matter of life and death. The fact that a healthy population is vital in the enhancement of economic prosperity is an indisputable reality that the state authorities embrace. In essence, the provision of Medicaid prescription drug benefits as well as the upgrading of Drug Distribution Programs for AIDS patients is essential in promoting health and wellness among New Jersey residents. Amidst the tough economic times, the advocacy of a sound healthcare policy is of critical significance. As such, the proposal to cut back funding on health-related programs like FamilyCare, Medicaid and ADDP should be inevitably reconsidered. The Significance of the Proposed Changes on Health Care The availability of quality and affordable health care services is necessary in the advancement of individual well-being. From a medical perspective, the client (patient) is the most important person. A general look at the proposed cuts and co-pays gives the indication that they will affect the ability of individuals to meet health care costs at a time when the cost of living has reached significantly high levels. In reality, the proposals will have a significant impact on health-seeking behavior, which constitutes a direct concern for the nursing and medical professions. The Impact of the Proposals from Positive and Negative Perspectives Generally speaking, the idea of coming up with a single healthcare policy that is not only budget-friendly, but which adequately addresses the health needs of the American population has remained elusive. At the national as well state level, financial analysts have year in year out grappled with the task of allocating funds to diverse priority issues. The idea of substituting certain financial allocations with others discerned to be of more socioeconomic consequence, often with mixed repercussions, has emerged as one of the most popular trends. Indeed, years of research and analysis has depicted the initiative of cutting health care spending on specific items as a double-edged sword. Positive Consequences One of the healthcare policy issues that have been extensively studied is the effect of Medicaid drug co-payments. Examining the results reveals a significant degree of consistency in as far as the programs’ ability to minimize the overall healthcare expenditure is concerned. A longitudinal survey carried out in thirty eight states revealed that co-payments play an important role in barring individuals entitled to Medicaid benefits from filling prescriptions during a particular year, holding all other factors constant (Mason, Leavitt, and Chaffee, 2007). The predominant argument advanced in support of such behavioral trends is that beneficiaries of government-sponsored healthcare programs are inherently motivated to excessively utilize healthcare services funded by the government, which include ADDP and Medicaid, when compared with those with private insurance (National Organization for Women, 2007). By extension therefore, implementing co-pays suffice in instilling an increased sense of responsibility on beneficiaries of such programs, thus minimizing the tendency to seek unnecessary medical care. In essence, the rationale behind the suggestion to implement co-pays is based on their underlying assumption that the move would discourage unnecessary consumption of the Medicaid and ADDP programs which have traditionally been sponsored by the New Jersey government. In the long-run, the move is expected to save the state from excessive expenditures, and the arising funds directed to other priority issues. Negative Consequences A closer evaluation depicts the proposed healthcare cutbacks as likely to precipitate numerous unintended consequences in the long-term. For instance, it would expose the residents of New Jersey to increased health risks and dangers. This is particularly so considering the vulnerable population groups such as the poorest of the poor, the physically and mentally challenged, and those suffering from terminal illnesses. According to preliminary projections, the Medicaid proposal will affect an estimated 418,000 of the most vulnerable individuals, while the ADDP one will affect about 7,500 individuals registered under the program (NJ for Health Care, 2009). Indeed, New Jersey’s FamilyCare program acts as the principal health insurance plan for low-income families within the state (Castro, 2007). Thus, the decision to close the insurance programs and implement co-payments will have far-reaching consequences on health-seeking behavior amongst these vulnerable groups. The most obvious result would be to deter patients from seeking healthcare at the appropriate times. This would serve to exacerbate their health conditions, and majority would definitely end up requiring specialized hospitalization and emergency attendance. For instance, baring individuals with HIV/AIDS from accessing the AIDS Drug Distribution Program and imposing co-pays implies that a significant majority from low-income households could fail to access the life sustaining drugs as well as the related services necessary for positive living. You read "New Jersey’s Proposals to Cut Health Care Spending" in category "Papers" While the assumption that depicts co-pays as serving to reduce unnecessary expenditures for individuals entitled to state-sponsored medical programs like Medicaid and ADDP could hold under certain circumstances, there is also a strong counterargument that the opposite could be true. Denial of the existing health insurance program (FamilyCare) which is fairly affordable would precipitate avoidable scenarios such as healthcare emergencies as well as serious illnesses (National Organization for Women, 2007). On another front, raising co-payments encourages patients to avoid cost-effective healthcare, and instead, seek medical attendance when their health status has significantly deteriorated. Examining the previous results of implementing co-pays gives provides strong indications that they indeed cause disadvantaged and marginalized groups to forego healthcare services, even those often described as fundamentally essential. In the last financial year for instance, the state of Oregon eliminated co-pays for prescription drugs after it emerged that the state’s Medicaid program co-payments were precipitating significant shifts in treatment patterns (Mason, Leavitt, and Chaffee, 2007). According to an investigation carried out in the same year, Medicaid co-pays for low-income individuals not only failed to reduce health costs as envisioned in the initial plan, but also precipitated clients to prefer a waiver of the co-pay as opposed to seeking medical services. The overall result of such tendencies is to inevitably increase the associated healthcare bills. Thus by implementing the FamilyCare, Medicaid and AIDS Drugs Distribution programs, the state of New Jersey would end up incurring more costs. From a practical point of view, this increased burden would be transferred to the ordinary taxpayer who has to pay additional taxes so as to cater for the unplanned healthcare expenditures. According to an analytical survey conducted by the Hispanic Directors Association of New Jersey (HDANJ), the proposed cuts are indeed shortsighted, and will most likely have severe financial implications (NJ for Health Care, 2009). This is not only in reference to the direct costs incurred in curative care, but as well those initiatives deemed to alleviate disease causation and spread. A case in point is when we consider the possible costs of patients who contract infectious diseases like the HIV virus, simply because they lack concise awareness of how the infection is transmitted. Similarly, it would be necessary to embrace a relatively new approach in the institutionalization of mentally sick clients who fail to receive appropriate outpatient counseling (Castro, 2007). In practice, these and other cases would most likely make the state and county governments incur additional and unplanned healthcare costs. Why the Nursing Professional Body Should Oppose the Proposed Cuts and Co-pays Examining the available body of evidence provides sufficient proof that the proposals to freeze the enrollment of parents in FamilyCare and implementation co-payments for individuals in Medicaid and the AIDS Drug Distribution Program are not only unnecessary, but also poses unprecedented health risks and dangers to the residents of New Jersey. It is imperative that nursing professional organizations throughout the state join hands with the rest of the citizenry in ensuring that these proposals are not implemented, considering the pivotal nature of the nursing profession in advocating for sound healthcare policy and promoting individual wellbeing in society. Indeed, the nursing fraternity should fight these cuts by using whichever means possible to influence state authorities to safeguard the health for all residents through the restoration of funding for the State’s FamilyCare, Medicaid and AIDS Drug Distribution Programs. This could be achieved by heeding the recently derived initiative of making phone calls to the state headquarters so as to express dissatisfaction with the proposals. Rationale for the Decision The proposals to cut health care spending on programs like Medicaid and ADDP in the state should not have been advanced at such an inappropriate timing. Indeed, the current financial crisis facing the nation as a whole has not spared New Jersey. Examining the unemployment rates reveals that they have attained record-high proportions. As more and more citizens are laid off thus losing individual and family healthcare insurance, the situation is becoming more and more desperate for many residents, particularly for low-income households. At a time when living costs have attained unprecedented levels, the move to cutback enrollment in the State’s FamilyCare for poor working adults as well as the initiative to implement co-payments for individuals who least can afford them could not be less untimely and misplaced. To further highlight why the proposed cuts and co-pays are unwarranted, it is worthwhile mentioning that New Jersey has indeed received unanticipated federal funding aimed at stimulating the state’s economic growth. Recently, for instance, the state received a windfall of an estimated two billion dollars (for Medicaid) and another one hundred million dollars (for FamilyCare) in additional federal funding, both of which were unexpected (). Despite the fact that these funds were largely utilized to correct the deficits in the state budget, it would have been similarly important to use a certain percentage cushion the health cutbacks. Indeed, this was the actual intention of the Congress. By utilizing the additional funds in appropriate ways, New Jersey would have probably won itself even more federal funding to meet its priority issues. In a nutshell therefore, implementing the said proposals is certainly a misplaced option, considering that it would have been avoided had the sound allocation mechanisms been employed. According to recent projections, an estimated seventy thousand people would be removed from the FamilyCare program, the only major health insurance scheme for low-income households should the stated proposals go through (NJ for Health Care, 2009). Likewise, the proposed move to implement Medicaid co-payments will affect the majority of those it is intended for: the elderly, poor, and children. The increased premiums and co-pays for health care have the implication that these vulnerable groups will be unable to access and afford essential medical services. Indeed, thousands of children in New Jersey could end up losing coverage for essential health care services such as payments for hearing aids, eyeglasses, and speech therapy among other necessary therapies hardly affordable to low-income households. In addition, implementation of co-pays for patients registered in the ADDP means that the less disadvantaged may experience unprecedented challenges in accessing drugs, counseling services, and any other necessary therapies and therapies. Overall, the implementation of the proposed cuts and co-pays make it hard for New Jersey residents to access quality and affordable health care which has often been cited as a necessary prerequisite for economic growth and development. As evidence from the Oregon case where similar cutbacks were implemented, the overall state expenditure on healthcare is likely to increase, rather than decrease. Though proposal to implement FamilyCare cuts and Medicaid programs co-payments may lead to reduced costs in the short-term, the unintended consequences such as the tendency by patients to seek medical services when their health condition has deteriorated will mean additional in the long-term. Rather than the envisaged intention of lowering costs, the implementation of the proposals will only serve to place extra pressure on the state coffers, which in turn will be redirected to ordinary taxpayers. As New Jersey’s Senator Joseph Vitale recently observed, not only will vulnerable families be affected, but the state economy will also be hurt (NJ for Health Care, 2009). According to state projections, investing a single dollar in FamilyCare generates about four dollars in business activity, which translates to a loss estimated at forty million dollars (The Star-Ledger Editorial Board, 2009). Evidently therefore, the implementation of the proposed cuts and co-pays will have vast, disastrous and multiple consequences on individual families and the state as a whole. Those arguing for the implementation of Medicaid and ADDP co-payments also seem to neglect the essentiality of good health. By making healthcare services less affordable particularly for low-income families, the proposed co-pays will push individuals to the edge where they will continuously face one inevitable dilemma: that of choosing between basic necessities like food and housing on the one hand, and heath care needs on the other. The overall result would be to discourage health-seeking behavior. By implication, the nursing and medical professional fraternities will be faced with the increased task of attending to patients in critical conditions, which puts unwarranted burdens on an already strained health care system. Conclusion Considering the tough economic conditions that prevail in the state of New Jersey, it is imperative that the proposals to implement cuts for FamilyCare and co-pays for Medicaid and ADDP programs be reconsidered. Particularly for individual families earning low incomes, the implementation of such initiatives presents a situation where one is increasingly faced with the dilemma of choosing between heath care needs and other necessities of life. Considering that the harsh economic conditions may force the State’s residents to opt to satisfy the more pressing needs of food and rent at the expense of health care services, it is necessary to reexamine the proposals. In a nutshell, the New Jersey State authorities should focus on expanding health care insurance coverage for all residents irrespective of their socioeconomic status or race, rather than suggesting cuts and co-pays which will not only harm individual families, but the wellbeing of the state as a whole. References Castro, R. J. (2007). Time to Keep the FamilyCare Promise. New Jersey Policy Perspective. http://njcitizenaction. org/hcfallingshort. pdf Coalition for a Moral Budget. (2009). Press release: Medicaid and ADDP co-pays will harm the most vulnerable New Jerseyans call upon legislature to eliminate co-pays from budget. Mason, D. J. , Leavitt, J. K. , and Chaffee, M. W. (2007). Policy politics in nursing and health care. (5th ed). Edinburgh : Elsevier Mosby. National Organization for Women. (2007). Tax cuts hurt the poor. Opposing Viewpoints: Poverty. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2007. Opposing Viewpoints Resource Center. Gale. Apollo Library. Retrieved June 25, 2009 from http://find. galegroup. com/ovrc/infomark. do? contentSet=GSRCtype=retrievetabID=T010prodId=OVRCdocId=EJ3010159287source=galesrcprod=OVRCuserGroupName=apolloversion=1. 0 NJ for Health Care (2009). Senator Vitale, Chair NJ Senate Health Committee stands with advocates to oppose cut backs to NJ FamilyCare, Medicaid and the Aids Drug Distribution Program. May 12, 2009. Retrieved June 25, 2009 from http://njcitizenaction. org/hcpress20090512a. html The Star-Ledger Editorial Board. (May 26, 2009). N. J. FamilyCare funding: An avoidable budget cut. The Star-Ledger. Retrieved June 25, 2009 from http://blog. nj. com/njv_editorial_page/2009/05/nj_familycare_funding_an_avoid. html How to cite New Jersey’s Proposals to Cut Health Care Spending, Papers

Corporate Financial Management of Superannuation Fund †Free Samples

Questions: 1.What are the important factors that should be considered by tertiary sector employees when they are deciding whether to place their superannuation contributions in the Defined Benefit Plan or the Investment Choice Plan? What issues relating to the concept of the time value of money may be important in this decision-making process? 2.If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin. Explain why this is not the case? Answers: 1. The concept of superannuation fund has come in as a convenient mode to save for a comfortable retirement. Retirement needs a lot of funds and that is possible when an individual is able to plan it properly keeping into consideration the time frame and other factors that come into the picture. It encourages the savings habit especially among the tertiary sector employees and also increases the responsibility of the employer towards the employees in the form of systematic contributions to the fund. Hence a lot of factors need to be considered in deciding the type of fund, timing of the contributions, market forces and anticipation of returns from different types of investments, so on and so forth. A few of these factors with specific reference to the time value of money have been discussed. The Efficient Market Hypothesis has also been analyzed from a fund managers angle in selecting and deciding on the most appropriate type of portfolio. Superannuation Contributions Almost every active country encourages the habit of saving and investing in retirement benefits to ensure a balanced and good life for employees during the later years of life. With the increasing focus and regulations framed by the governments requiring mandated contributions by the employers, there are large amounts being deposited every year under the head of superannuation contributions. As per ASIC (2016) earning adequate returns from these investments becomes the responsibility of the financial institutions as the ultimate motive of superannuation contributions has to be achieved. Thus a lot of factors have to be considered by the fund managers with whom the superannuation contributions are placed to ensure that the required amount of money is made available to the employee on retirement. In consideration of the economic sector, there are three major and relevant sectors namely primary, secondary and tertiary sectors. The major role of the tertiary sector is to share their experiences, wisdom, and productivity with those in the primary and secondary sectors as the root level problems and benefits are first identified by the tertiary sector employees (Libby et. al, 2011). To ensure the quality retirement life for employees, the government introduced the concept of mandated employer contributions which was at 3 percent and later enhanced to five percent from the year 2005. Due to this systematic allocation and savings, the burden of social security on the state gets reduced and the superannuation investment and pension payments system are seen upon as a beneficial mode in many other countries (ASIC, 2016). As the returns from such superannuation funds represent the savings over the entire term of employment, it is essential to ensure that the contribution amounts are in vested in proper return bearing sectors (Davies Crawford, 2012). When the lump sum amount is paid to the employee on retirement, it should be substantial and hence the factors that need to be considered are discussed hereunder. Unisuper Limited is one of the biggest individual and industry based superannuation funds that manages and offers services to the employees of the tertiary sectors. The two main kinds of superannuation plans are Defined Benefit Plan and Investment Choice Plan (Goyal Wahal, 2008). A new revolution in the superannuation funds industry is that now employees have the options of choosing among the superannuation fund products offering different types of retirement options and an enhanced flexibility in deciding the kinds of assets for the investment of the superannuation fund contributions. A brief understanding of the types of the funds is highlighted. Under the Defined Benefits Plan, the final amount is paid upon the retirement of the employee. Such amount is determined after taking into account factors like the last drawn salary of the employee, the age of the employee, the number of years of service, etc (Parrino et. al, 2012). Under this plan, the employees are allowed to pool their contribution amounts and invest in the designated assets selected upon by the trustees and fund managers of the Unisuper Ltd. As the final payout amount is already decided, the returns from the portfolio investment become insignificant as it is not going to have an impact on the final payout which is decided by a formula. The returns from the portfolio of assets do not impact the individual employees but have to be considered by the fund managers. Thus, in a nutshell, it can be understood that it is the duty of the fund managers and trustees to ensure that there is sufficient amount ava ilable for payment upon the retirement of the employee (Shah, 2013). The second type is Investment Choice Superannuation Fund. In this option, the annual amount of employer and employee contributions are retained in an accumulating account and managed by private institutions. The returns from portfolio assets are also added in these accounts and the administrative and management expenses are met from the same accounts. As the investment options are open, the employees can do a risk and return analysis and designate the investment amounts to certain types of assets like shares, fixed securities, or such other options upon discussion with the fund managers. The strategies have to be evolved and reviewed by the individual employees as the final payout depends upon the actual returns and the realistic amounts available in the accumulating accounts upon the retirement of the employee. Thus the employees encounter the risks related to the superannuation contributions. Relevant Factors to be considered As it is evident that under the Defined Benefits Plant, the payout amount is a fixed sum and will is not impacted by the volatility of returns. Thus it is a safer option for employees requiring steady returns. Under the Investment Choice Plan, if the employees have a higher risk appetite and are confident that their own analysis and the analysis of the fund managers can provide higher returns, then they can go in for this option (Albrecht et. al, 2011). Apart from this, the other factors include the ability to manage funds. If employees are knowledgeable about the markets and returns, then they can take up the responsibility of managing and invest in the portfolio based on their expertise and strategies and thus opt for the Investment Choice Plan. On the other hand, if employees are incapable of managing their funds, then they can designate their funds to establish institutions like Unisuper Limited and save themselves from potential losses and wait for the safe and fixed return amounts. In such cases, the Defined Benefit Plan turns out to be beneficial. Apart from this, the tertiary sector can opt for the Investment Choice Plan when they are having additional sources of income generating assets and hence the returns from superannuation funds can be variable. On the other hand, if the employee is not having another additional source of income generation and has to depend upon the superannuation amounts, then the Defined Benefits Plan is a better option as it ensures a uniform return without being affected by the market movements. Time Value of Money Consideration There is always an opportunity cost involved in respect of investments. Time Value of Money takes into consideration the current value of future cash flows and the future value of the current investments. As money grows with time, it is essential to evaluate whether the designated investments are growing in line with the rate of returns from the markets. For instance, $100,000 today is not going to be the same $100,000 upon retirement, it would have got depreciated and hence these factors are essential in the decision-making process for selection of funds (Libby et. al, 2011). Hence, time value of money comes into action when deciding a future course of an action. The retirement funds need to be determined to keep into consideration the time value of money as the same amount will not be the same in the future course of time. The superannuation contributions and retirement payouts are a life times earnings of the employees. Hence it is essential that the employees efficiently understand the concept of time value of money and make proper decisions with reference to the future value of presently invested amounts. The portfolio of investments should be studied on a historical basis to understand its past performance and also predict the future performance based upon the predictions from experts (Vaitilingam, 2010). The past performances provide a trend that can be evaluated to predict the future course of action and to know the pattern of behavior. As time value of money aims for higher returns, there can be a few bad years as well due to the global economic conditions having an impact on the returns from investments. Thus the employee also has to determine the number of years they can wait to get the desired returns. This is more like a provisioning for bad market performance. The factors relevant in such cases would be the availability of alternative income generation options and the waiting period which includes preparing the employee for both the best and worst conditions and situations. Thus time value of money concept is pretty significant and has to be considered to ensure safe returns. 2. Efficient Market Hypothesis The efficient market hypothesis believes that share prices are a result of the market reactions and incorporates all the available market information to reflect the most efficient stock price. Hence it is assumed to be perfect. But this hypothesis does not hold true due to the following reasons: Markets behave in an irrational manner and hence fair price is a myth. Investor psychologies are unpredictable and cannot always reflect the true price level. Hence theories based on this are undependable. If the stock markets are assumed to be performing properly, then it is in line with the random walk theory but in reality, investors are rational but the situations and events are uncertain. Due to the above shortcomings, the fund manager cannot select a portfolio with a pin due to the following reasons: The portfolio designed and selected might not be a very well diversified one leaving it open and susceptible to unique risks that do not usually reap rich rewards. Such a portfolio might also be open to too many systematic risks for the individual investors. In case the investors are having other primary investment options in riskless assets yielding higher rewards, then resorting to the efficient market hypothesis might not be a risky venture, else such a portfolio might have a pretty high beta in consideration of the individuals risk preferences (Northington, 2011). A fund manager has to meet certain specific return goals and risk goals. Experience from the stock markets has time and again proved that there is no way to control the expected, anticipated and unanticipated risks of the portfolio. Markets have no memory and there is no easy way to make money out of the stock markets. There are different types of risks involved in the case of short-term interest rates versus long-term interest rates (Porter Norton, 2014). Hence portfolio selection needs to be done on a calculated and systematic basis. For stocks of smaller companies, the market size is relatively lower in comparison to those of higher companies (Deegan, 2011). Hence the price movements of such smaller stocks are a clear reflection of market inefficiency. As per Fama (1998), every stock is fundamentally different in terms of market competition, capital structure, volatility, financial potential, etc. Hence the market can never adjust itself to suit the requirements of all the stocks. As the statistical analysis is bound to its inherent limitations, the exact market performance in line with the efficient market hypothesis can be termed as a mere coincidence. The taxation structure of different individuals is of critical nature as certain assets tend to earn surpluses due to the higher taxability. In such cases, the after-tax returns to individuals in low tax brackets on such assets turn out to be favorable. But this again does not hold good for all cases (Marsh, 2009). Upon consideration of the above factors, it can be understood that portfolio selection cannot be done with a pin. The fund manager still has significant jobs to be done which are as follows: The fund manager needs to ensure that the portfolio is well diversified. A large number of stocks in the portfolio do not essentially ensure a proper diversification. The risk of a diversified portfolio should be appropriate for the client. The expected money should be made available to the client on retirement for which the risk of the portfolio needs to be reviewed at regular intervals (Fama, 1998). Lastly, the portfolio has to be tailored to take advantage of the special tax laws and benefits for the pension funds. Such options make it possible to increase the expected returns of the portfolio without increasing the risk. Thus the risk bearing ability aids in the decision-making process. The investment risks and return profiles have to be considered together in deciding upon the type of superannuation fund and investment according to the efficient market hypothesis. References ASIC 2016, Type of funds, viewed 16 May 2017 https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/choosing-a-super-fund/types-of-super-funds Albrecht, W, Stice, E Stice, J 2011, Financial accounting, Mason, OH: Thomson/South-Western. Davies, T Crawford, I 2012, Financial accounting, Harlow, England: Pearson. Deegan, C. M 2011, In Financial accounting theory, North Ryde, N.S.W: McGraw-Hill. Fama, E.F 1998, Market Efficiency, Long-term Returns, and Behavioral Finance, Journal of Financial Economics, vol. 49, pp. 283-306 Goyal, A Wahal, S 2008, The Selection and Termination of Investment Management Firms by Plan Sponsors, Journal ofFinance , vol. 63, pp. 1802?1827. Libby, R, Libby, P Short, D 2011,Financial accounting, New York: McGraw-Hill/Irwin. Marsh, C 2009, Mastering financial management, Harlow: Financial Times Prentice Hall Northington, S 2011, Finance, New York, NY: Ferguson's. Parrino, R, Kidwell, D Bates, T 2012, Fundamentals of corporate finance, Hoboken, Porter, G Norton, C 2014, Financial Accounting: The Impact on Decision Maker, Texas: Cengage Learning Shah, P 2013, Financial Accounting, London: Oxford University Press Vaitilingam, R 2010, The Financial Times Guide to Using the Financial Pages, London: FT Prentice Hall.