Coca-Cola Company vs. Pepsico, Inc

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Coca-Cola Company vs. PepsiCo, Inc Tina Davis Dr. David Humphries ACC 305 Intermediate Accounting III 9/11/13 Pensions Plans of Coca-Cola and PepsiCo Pension plan is an important feature in the modern day society and should therefore be embraced by companies. The Coca-Cola and PepsiCo have done very well in ensuring that their employees get full benefits from this arrangement (The Coca-Cola Company, 2008). Though they may differ in the way they offer this service, the benefits are strongly felt by those who subscribe. The two companies work under the 401k pension plan with insurance advantage on the medical requirements for the employees. This is a special type of a plan with friendly taxation measures that favors the employees and the company itself. Since its inception, the two companies have offered this service to employees. They have their lives insured under the same plan though not all benefit from it (Frieman, 2009). The contributory plan in the Coca- Cola is done by the employees and the employer. It is a scheme where the employer enjoys the benefit of taxation for their input and may be restricted to some foreign workers only. Nonetheless, Coca- Cola has a clear retirement benefit plan for its employers and employees. The plan is generally unfunded and of great importance to people who work in the organization. Foreign workers may reap from this plan, but this is subject to years of work in the company and also the amount of their salaries. (The Coca-Cola Company, 2008.) The pensions plan for the Pepsi Co is based on the willingness of the individual. It benefits full-time employees and some international employees. The key consideration is either the years of service and in other cases the combination of this and the size of earning (PepsiCo, Inc., 2008, p.43). This is also a key consideration by Coca-Cola. Notably, both PepsiCo and Coca-Cola

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