SSM700plus
Analyst: The Mayor’s petition to revise existing pension systems has raised a significant amount of protest from the city’s labor unions, whose leaders fear that the revision will lead to reduced pensions for retired workers, citing as evidence the fact that the pay scales of government workers are often reduced when the economy experiences a downturn. However, in this case, the union leaders’ fears are baseless since the pension amounts have already been guaranteed to government workers.
The analyst’s argument depends on which of the following assumptions?
A. Some benefits for government employees will continue regardless of the actual amount of pension that is paid to them
B. The union leaders’ protests are a result of expectations from pensioners that their interests will be protected by the labor unions.
C. A current economic downturn is the reason for the Mayor’s decision to revise the city’s existing pension system.
D. The pay scales of government workers that are reduced in times of economic downturns are not already guaranteed by the government.
E. Revisions of pension systems have not led to disadvantages for pensioners in the past.
Source :Retired Discussion from GMAT Club
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Responding to a pm:
- Pay scales of government workers are often reduced when the economy experiences a downturn
- Mayor’s petition to revise existing pension systems has raised a significant amount of protest from the city’s labor unions, whose leaders fear that the revision will lead to reduced pensions for retired worker
- the pension amounts have already been guaranteed to government workers
Conclusion: The union leaders’ fears are baseless
The argument is concluding that leaders are worrying about nothing based on "pension amounts have been guaranteed".
So the assumption here is that if the pension amount is guaranteed, it is not reduced. We need an assumption that links 'guaranteed payments' with 'no worries of reduction'.
A. Some benefits for government employees will continue regardless of the actual amount of pension that is paid to them
The worry is "reduction in amount".
B. The union leaders’ protests are a result of expectations from pensioners that their interests will be protected by the labor unions.
Irrelevant why leaders are protesting - whether pensioners have expectations from them or not.
C. A current economic downturn is the reason for the Mayor’s decision to revise the city’s existing pension system.
This is a reason to worry. If there is a downturn, it is possible that pension will be reduced.
D. The pay scales of government workers that are reduced in times of economic downturns are not already guaranteed by the government.
Correct. It links the pay scales that are reduced with those that are guaranteed. It tells us that the ones that are reduced are the ones not guaranteed. So the ones that are guaranteed are not reduced. By telling us that the pensions are guaranteed, the argument is telling us that they will not be reduced. So the argument is assuming that guaranteed means they will not be reduced.
E. Revisions of pension systems have not led to disadvantages for pensioners in the past.
Not an assumption of the argument. Doesn't link guaranteed with no worry.
Answer (D)