Retirement and Communication Plan

Retirement and Communication Plan

Proposal for Retirement Plan

Introduction

This proposal is prepared in order to give information to the management of the organization, regarding the retirement plan of the company and focusing on the pros and cons of the plan. With the same time focusing on the company profit and loss regarding these retirement plan due to employee mobility or switching of job.

Statement of problem

The employees have more frequently switched in last few months due to reason that they were feeling insecurity in the job and their future.

Significance

The retirement plan will help the management and organization in motivating the employee in order to be productive, which in the long term beneficiary to the company.

Plans for retirement

As the company is not so big and comprises of 150 employees, so company has three retirement plan:

Plan 1

The first plan is the base on old age. The plan is very much beneficiary for old-age people. Company will deduct $150, from the employees' salary also add the same amount that is $150 in that deduction. This accumulated amount will be reimbursed to the employee on his retirement time(Clampitt, 2005).

Pros

1.Amount that the employee is paying to the company is getting double after his retirement.

2.This plan is beneficiary for any post employee, as the amount to invest is very low.

Cons

The return is small, as the employee is just getting the doubled amount, which in the future would be equal to the amount investing today.

Plan 2

The alternate plan is based on the retirement beneficiary. After serving his complete job tenure in the company, the company will allot him a place to accommodate his family, also give medical support to not only his employee, but his family also.

Pros

1.After retirement, an employee is tension free from his family shelter and support.

Cons

1.Employees have to remain in the company in order to gain such benefit for his whole life. He could not move to any other firm for future growth.

Plan 3

The third plan is based on investment in own company. If employee joining at the age of 30, and investing $500 each month in a company, till the age of 60 years; then company will pay him back $1,000,000. This is a huge amount to life a comfortable life after retirement.

Pros

1.The amounts that will the employee receive are much bigger.

Cons

1.The amount is very much big to invest.

Anticipated Results

This plan is very much necessary to be implemented in the organization, as it will help in maximizing the employee productivity, as well as help in retaining the employees for longer tenure; which will result, in saving the company's cost in hiring and training new employees(Duhe, 2008).

Profit-Sharing Plan with A 401(K) Component

Those who retained pension programs often changed them from defined-benefit plans (which guarantee a predetermined monthly income after retirement that is mainly based on salary and numbers of years worked) to defined-contribution investment plans such as 401(k)s. In these plans, employees set aside part of their pay for retirement tax deferred, with the company contributing a ...