Retirement Plan Proposal and Communication Plan
Retirement Plan Proposal and Communication Plan HRM/324 Retirement Plan Proposal and Communication Plan Retirement pensions provides a source of retirement income employees can draw on after they stop working, they have to invest for retirement while they are still on the job (Lightbulb Financial, 2013). To take advantage of the opportunity to accumulate tax-deferred earnings and in some cases defer taxes on their contributions as well, employees can participate in employer-sponsored retirement plans and invest in individual retirement accounts (IRAs) that they set up on their own (Lightbulb Financial, 2013). This paper will propose several types of retirement plans that could be offered to employees. In addition, a communication plan will be designed to encourage employee participation for one of the proposed retirement plans.
Retirement Plans. Employer-sponsored retirement plans provide employees with income after they have met a minimum retirement age and have left the company (Milkovich and Newman, 2008). Companies establish retirement or pension plans following one of three different designs: a defined benefit plan, a defined contribution plan, or hybrid plans that combine features of traditional defined benefit and defined contribution plans (Milkovich and Newman, 2008). The importance of employer-provided retirement plans is evidenced by a recent study showing that employees with employer-provided retirement plans are more likely to have sufficient savings for a comfortable retirement than those who do not have these plans (Milkovich and Newman, 2008). Two basic types of pension plans that will be offered are: defined benefit plans and defined contribution plans (Milkovich and Newman, 2008). Defined benefit plan. Defined benefit plans guarantee retirement benefits specified in the retirement plan document. This benefit usually is expressed in terms of a monthly sum equal to a percentage of a participant’s preretirement pay
Retirement Plans. Employer-sponsored retirement plans provide employees with income after they have met a minimum retirement age and have left the company (Milkovich and Newman, 2008). Companies establish retirement or pension plans following one of three different designs: a defined benefit plan, a defined contribution plan, or hybrid plans that combine features of traditional defined benefit and defined contribution plans (Milkovich and Newman, 2008). The importance of employer-provided retirement plans is evidenced by a recent study showing that employees with employer-provided retirement plans are more likely to have sufficient savings for a comfortable retirement than those who do not have these plans (Milkovich and Newman, 2008). Two basic types of pension plans that will be offered are: defined benefit plans and defined contribution plans (Milkovich and Newman, 2008). Defined benefit plan. Defined benefit plans guarantee retirement benefits specified in the retirement plan document. This benefit usually is expressed in terms of a monthly sum equal to a percentage of a participant’s preretirement pay
References: Lightbulb Financial. (2013). Employer-Sponsored Retirement Plans. Retrieved from http://lightbulbfinancial.com/employer-sponsored-retirement-plans/ Lyceum (2013). Employee Retirement Plan Education & Communication. Retrieved from http://financial.lyceum.com/services/employee-retirement-plan-education.php Martocchio, J. J. (2009). Strategic compensation: A human resource management approach (5th ed.) Milkovich, G. T. & Newman, J. M. (2008). Compensation (9th ed.). New York: McGraw-Hill Watson, T Wolfe, L. (2013). ERISA Law - What is ERISA and What Does ERISA Law Cover? Retrieved from http://womeninbusiness.about.com/od/erisalaw/a/erisa-basics.htm