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Benefit Plan

Topics: Pension, Employee benefit, Retirement Pages: 5 (756 words) Published: June 6, 2014


Blue Rose

Keller Graduate School of Management

July 14, 2013

Blue Rose Benefit Plan
Company Profile
Company Name
Blue Rose

Government CB Vendor ID
USR20040707011619975

Address
31, Maple Road, Carson City, Virginia, USA

Phone Number
123, Sample Rd, Carson City, Virginia, USA
(703) 123-4567

Fax Number
123, Sample Rd, Carson City, Virginia, USA
(703) 123-4567

Website
www.blueroseservices.com

Year Established
2000

Business Type
8 (a) Program Certified Small Business

NAICS Code
[631622] Computer programming services

Email ID
Services@Bluerose.com

Blue Rose is a software company involved in designing mobile applications and online games. There are 40 software engineers and 10 support staff working in the company. The company owns its own building and has been earning a consistent profit. Blue Rose is an expert in designing cutting edge games which simulate real time combat sequences, driving and virtual worlds. The company is planning to start a hardware department this year. Blue Rose's apps and games are rated among the top 10 apps and the most downloaded games list in the internet. Net Worth

$ 1,700,000
Earnings

$ 850,000
Fiscal Year End
10/2012

SIC Industry Classification
6897 – Office of the company, NEC

Key Competitors
Rovio, Mekens (Other Game designing and app development Companies)

CEO & Chairman

Claire Philips
Vice Chairman
Joseph McKenzie
Vice President

John Milton
Current Benefit Plan
All employees aged 21 are eligible to get the basic benefits of Blue Rose software company. They should have completed 1000 hours of service with the company which usually occurs around one year after joining the company to be eligible for the benefits. The basic benefit plan of Blue Rose includes Retirement plans and Life Insurance plans. Senior engineers and the management staff get paid vacations and sick leave. All employees are entitled to get basic benefits like workers compensation and Federal Family and Medical Leave. FICA taxes will be deducted from every employee’s salary. a. Retirement Benefits

The normal retirement age is 65. The benefit is determined based on the annual compensation package. Normal retirement rate benefit will be equivalent to 10% of the actual compensation earned by the employee annually. Pension benefits can be gained from the date of completing service. This is applicable to voluntary retirement, employment termination and quitting due to disability. b. Insurance Benefits

The company requires every employee who had completed a year with them to contribute 10% of their salary towards life insurance. The company gives coverage up to 10 times the actual amount stored in the employee’s insurance account in cases of medical emergencies, death or disability. They employees who had completed 5 years of working in Blue Rose are eligible to take a loan on their insurance savings. c. Paid leave

Senior engineers and management staff who have completed 8 years in Blue Rose and are permanent employees of the company can get paid leave up to 15 days a year for vacation or medical emergencies. They are also entitled to get travel allowance for in-country vacations and free accommodation in company guest houses in certain locations. Improvements Required

The benefits given by Blue Rose are quite lenient considering the size and profit of the company. But, certain basic additions like medical and dental coverage and paid sick leave for all employees are required. The junior employees will benefit a lot from such plans. Proposed improvement plans

1. A basic medical coverage for all employees in the company including the trainees who have less than one year experience is required. The plan should cover at least 25% of basic medical and dental expenses incurred by the employee. 2. Employees with less than 8 years of service in Blue Rose do not get paid...

References: 1. Meier, David. “The Basics of Employee Benefits”. Entrepreneur. 2013. 15th July 2013.
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