This website uses cookies to ensure you have the best experience. Learn more

Retirement Plan And Communication Proposal Essay

1239 words - 5 pages

Retirement Plan and Communication Proposal

Ebony Brown

January 24, 2012
Jocelyn Freimark
The design of a company’s benefits program is important to ensure the plans fit the structure of the company and the needs of its employees. Being a new company starting with 150 employees it will be important to design a varied and comprehensive retirement program that will not only address the needs of the company’s current employees, but will also attract potential employees, and be affordable for the company.

Qualified plans “entitle employers and employees to substantial tax benefits” (Martocchio, 2009, p. 3), because neither has to pay taxes on contributions within a ...view middle of the document...

Employers invest funds on behalf of the employee from an array of investment options, such as stocks, bonds, and market funds (Martocchio, 2009, p. 7). Being a newly operational and small company, investment options should be limited to employer choice based on fiduciaries reports.

A popular type of defined contribution plan is a 401K which allows employees to “defer part of their compensation to the trust of a qualified defined contribution plan” (Martocchio, 2009, p. 7). 401K plans popular because of the several benefits offered to employers and employees. First, income tax is not paid on contributions until the employee withdraws the fund; second employers contributions are deducted from taxable income, and finally, gained investments are not taxed until a participant’s funds are received.

Profit-sharing is used to distribute money to employees through a pool that is funded by gross company sales or another basis (Martocchio, 2009, p. 8). One of three formulas can be used to establish employer contribution percentage. A “fixed first- dollar-of-profits formula uses a specific percentage of either pretax or after-tax annual profits contingent upon the success of a company’s goals” (Martocchio, 2009, p. 9), a graduated first-dollar-profit formula shares a specified percentage of the company’s profits, and finally the profitability threshold formulas fund profit sharing pools only if a profits go above a set minimum level, but below a maximum amount.

Allocation of profit-sharing funds can be equally paid out regardless of employee contribution or level in the company, based on employee’s annual salary, or based on employee contribution. Being a new company with a small number of employees, the best allocation method may be to equally pay out employees to promote employee motivation to reach the company goals, thereby assisting in increase sales and profits.

Both benefit plans meet requirements of the ERISA by allowing all employees to contribute after a year of service and completed work hours. In addition, information regarding these plans, such as requirements, plan information, etc. will be communicated thoroughly to every employee.

When good benefit plans are in place, communicating the information to the employee is important to ensure their understanding of investment and contribution options from the employer and the employee, employer and employee requirements, plan options, and to comply with Employee Retirement Income Security Act of 1974 (ERISA) requirements. Several types of communication methods can be used to distribute, inform, and educate employees on company benefit and retirement plans.

The first method of communication is mailing information packets to each employee’s home. Information packets should include plan options available, investment options and information, employee and employer contribution amounts, eligibility requirements, important dates, and necessary contact...

Other Papers Like Retirement Plan And Communication Proposal

Change Management And Communication Plan Essay

745 words - 3 pages Change Management and Communication Plan Damon , Kesha , MGT/311 Change Management and Communication Plan Riordan Manufacturing has a prevailing structure and an organization based on formal and informal power. The obvious formal power structure identified through its organizational chart, is legitimate power. Legitimate power “represents the formal authority to control and use organizational resources based on structural position in

Research Proposal – Thesis, Major Points, and Plan

576 words - 3 pages Running Head: Research Proposal – Thesis, Major Points, and Plan Research Proposal – Thesis, Major Points, and Plan (Research and Writing) The topic I’ll be focused on for my research is the “No Child Left behind Act” I think this is very important for our society to grow in numbers; parents wouldn’t have to fear about the outcome of their child performances. Another reason I selected this topic is

Hr599 Course Project

1874 words - 8 pages the new plan. By keeping recording the process this will allow us to follow the effectiveness of the program and allow for necessary adjustment during implemented. Another strategy would involve monitoring the number of inquiries through Human Resources in regards to those requesting and wanting more information concerning retirement purposes from those who are currently employed and were not offered the plan or the plan was not implemented

Early Withdrawal of Retirement Pension Fund

5123 words - 21 pages , pension benefit will be calculated for 14 years which is 168 months (MPAO, Maldives pension , 2014). And there is no circumstance such that serious illness, huge injury or disability- which they can borrow the money before retired. And a serious debate is ongoing among participants regarding this issue. Research Proposal - 2014 3 2.0 2.1 Problem Statement and Rational for the Research Problem Statement A retirement pension schemes


818 words - 4 pages laborers without any option to enroll in one. What the government can do is to require private employers, particularly large businesses and companies, to offer a retirement plan as it could dramatically alleviate the load being shouldered by the Social Security. While many companies would disagree with such proposal, it is important to note that such policy would yield the greater happiness of the majority. In fact, this policy not only benefits

Com 172 Persuasive Essay

1008 words - 5 pages Social Security and Retirement Erin Darby COM172 June 7, 2011 Louise Gerdes Social Security and Retirement In the United States, Americans need to plan for retirement. Social Security will not cover people’s needs when retiring. Americans who retire should use savings based on their personal investments, private savings accounts, employer’s pensions such as 401K, and Social Security so that they can live the rest of their lives

The Desire to Retire

1526 words - 7 pages Americans plan to do upon retiring from the work force. Without the promise of retirement, many would find it very difficult to get out of bed and head to work each morning. “Retirement is a fairly recent phenomenon. At the beginning of the nineteenth century, few people retired, because they simply could not afford to do so. As white – collar jobs replaced a predominantly agricultural economy incomes rose and people had more money with


602 words - 3 pages ; include at least three features of each. (Not defined in book, look elsewhere) a. Defined benefit plans: b. Defined contributions plans: 2. Most retirement plans today are of the defined contribution variety. An example is a 401(k) plan. Suppose your first employer after graduation from college offers a 401(k) plan and that you make contributions from each paycheck. c. How are the contributions treated for tax

Wall Street Journal: Assignment #3

617 words - 3 pages ; include at least three features of each. (Not defined in book, look elsewhere) a. Defined benefit plans: b. Defined contributions plans: 2. Most retirement plans today are of the defined contribution variety. An example is a 401(k) plan. Suppose your first employer after graduation from college offers a 401(k) plan and that you make contributions from each paycheck. c. How are the contributions treated for tax

Defined-Contribution Plan; Types

636 words - 3 pages Yini Xu Wealth Management 3/2/2016 Defined-Contribution Plan; Types A defined-contribution plan is a type of retirement plan for employee’s benefits during retirement. Every employee has an individual account. It depends on the contributions made by employers, employee or both and the investment performance of the account. The amount contained in the account is equal to the market value of the assets accumulated. It is not based on the

Termination of Employment

875 words - 4 pages in December 2010, CLN Company implemented a company-wide early retirement program for its 41 employees, including Mrs. Villahermosa, who, at that time, was 50 years old, with 25 years of continuous service to the company. She was offered an early retirement package amounting to P171, 982.90, but she rejected the same because she was so sure that she didn’t sign such agreement. CLN Company exercised its option under the retirement plan, and

Related Essays

Project Proposal And Plan Essay

2246 words - 9 pages PROJECT PROPOSAL AND PLAN REGARDING OIL AS A SOURCE OF ENERGY IN THE U.K. Course Tutor University Date Aim The aim of this project proposal will be to respond to

Project Proposal And Implementation Plan Essay

2518 words - 11 pages CONFIGURATION 104.1.6. PHASE 6 - ONGOING SUPPORT AND MAINTENANCE 114.2. KEY ACTIVITIES AND DELIVERABLES 114.3. THE PROJECT TEAM 134.4. ASSUMPTIONS AND DEPENDENCIES 134.4.1. PROJECT ASSUMPTIONS 134.4.2. PROJECT SCOPE ASSUMPTIONS 144.4.3. EXCLUSIONS 155. REFERENCE LIST 172. Executive SummaryACME Web Services Ltd(AWS) is pleased to provide Grand United Health Fund(GU) with the Web Development Project Proposal and Implementation Plan. In our response, we have

Management And Communication Plan Essay

1214 words - 5 pages Management and Communication Plan Management and Communication Plan Riordan Industries, Inc. is a Fortune 1000 enterprise, according to the overview from Apollo Group in 2012. The industry will continue to be successful with strong leadership, new ideas, and necessary changes of new and improved management structures despite the challenges that may be faced. The organizational structure of the Pontiac, MI plant is set up with twenty

Balanced Scorecard And Communication Plan Essay

886 words - 4 pages Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan The balanced scorecard is vital for a healthy growing business. It is an essential component for defining the goals and targets of the business. "The Balanced Scorecard is a tool that is widely used to help a company achieve its financial objectives by