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The Mayor’s petition to revise existing pension systems has raised

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The Mayor’s petition to revise existing pension systems has raised  [#permalink]

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New post 19 Jun 2018, 06:18
2
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

58% (02:13) correct 42% (02:35) wrong based on 200 sessions

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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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Re: The Mayor’s petition to revise existing pension systems has raised  [#permalink]

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New post 19 Jun 2018, 11:45
SSM700plus wrote:
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

Please explain your reasoning behind choosing the answer and get kudos.

I don't have the Official Explanation so request everyone to participate. Thanks!!



D. The pay scales of government workers that are reduced in times of economic downturns are not already guaranteed by the government.

negate option D
The pay scales of government workers that are reduced in times of economic downturns are also already guaranteed by the government.
So, the union reasoning is valid ,and conclusion shatters down
ie govt will decrease the pension ,as thought by union.

Ans D
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Re: The Mayor’s petition to revise existing pension systems has raised  [#permalink]

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New post 25 Jun 2018, 12:05
Hello,
I was able to choose D by POE. Can someone explain the logic behind D?
I tried to link the pensions to the pay scales but it wasn't in any of the answer choices.
I tried negating D but I couldn't see how it shatters the conclusion.
If the pay scales are fixed or guaranteed by the gvt during an economic downturn this should not affect the pensions and the unions have no case and the analyst is right.
Can someone please elaborate?
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The Mayor’s petition to revise existing pension systems has raised  [#permalink]

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New post 26 Jun 2018, 04:28
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. - Some benefits for government employees, doesn't justify the significant amount mentioned in the stimulus. So A is incorrect.
B. The union leaders’ protests are a result of expectations from pensioners that their interests will be protected by the labor unions. - The derived result "The union leaders’ protests are a result of expectations from pensioners" is no where mentioned. It is out of scope. So B is eliminated.
C. A current economic downturn is the reason for the Mayor’s decision to revise the city’s existing pension system. - We don't know why mayor is revising the plan, so we don't want to assume it is because of economic downturn. So C is incorrect.
D. The pay scales of government workers that are reduced in times of economic downturns are not already guaranteed by the government. - Here the government after a economic downturn, it is not yet decided what to do. This align with conclusion "the union leaders’ fears are baseless". So D is correct.
E. Revisions of pension systems have not led to disadvantages for pensioners in the past. - We don't know what had happened in the past. Out of scope and E is eliminated.

The answer choice is D.
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The Mayor’s petition to revise existing pension systems has raised &nbs [#permalink] 26 Jun 2018, 04:28
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The Mayor’s petition to revise existing pension systems has raised

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