Final answer:
It is generally false that firms with pension plans have higher turnover rates; pensions are typically seen as a benefit that improves employee retention. Firms with a high percentage of union employees do not always go bankrupt due to higher wages, as unions can also enhance competitiveness. A higher rate of return on pension fund investments can allow firms to save less while still meeting future obligations.
Step-by-step explanation:
The question "Are firms with pension plans likely to have higher turnover rates among employees?" implies a direct correlation between the existence of pension plans and employee turnover rates. However, the statement that firms with pension plans have higher turnover rates among employees is generally considered false. Typically, comprehensive benefit packages, including pension plans, tend to improve employee retention as they provide financial security for the future. On the other side of the spectrum, firms with a higher percentage of union employees paying higher wages don’t follow a consistent pattern in regard to bankruptcy. While some unions may lead firms to financial difficulties, others may actually make firms more competitive. Additionally, when discussing pension funds, it’s important to note that a higher rate of return on investments can lead to a lower savings rate for companies offering fixed pension benefits. Firms can save less in the present while still fulfilling their future obligations due to the increased value of their investments over time.