RETIREMENT PLAN PROPOSAL AND COMMUNICATION PLAN

Retirement Plan Proposal and Communication Plan

Retirement Plan Proposal and Communication Plan

Introduction

A good retirement plan has a huge variety of benefits. One of these benefits is that employees be motivated to stay longer with a company and reduce turnover. On the other hand, it is essential to note that retirement plans adopted by the organization must specifically address specific organizational requirements. In this proposed retirement plan and communication plan, I would offer three retirement plans that can be offered in our organization and a communication plan to improve employee participation in one of the proposed retirement plans.

Retirement plans that could be offered

By Slenick et al. (2009), a good retirement plan, varies depending on the needs of an enterprise organization. With a proper retirement plan, the ability of employees to save for the future and more in this line, there are also some tax savings reports should be submitted. Here, is three of the best retirement plan that takes into account the specific circumstances of our organizations (Slenick, 2009).

401(K) plan

Contrary to popular opinion, a 401 (K) is not just for large companies and is not expensive in terms of creation and maintenance. In fact, any company with 25 employees or more is eligible for a 401 (K). Ezra et al. (2009) argues that competition between suppliers of a 401 (k) makes the cost of the same drop lower. As for eligibility, any business is eligible for a 401 (K) and as employees, but must have worked at least 1,000 hours per year, or previous period. In the absence of a vesting period, these employees must have worked for the same number of hours, but in this case for two years. When it comes to contribution limits, for those employees who will be fifty years old or more than fifty as at December 12, 2010, the contribution limit is set to $ 22,000. For others, it is set as $ 16,500 (Milkovich, 2008). On the other hand, in the case of employers, the combined contribution of employee and employer should not exceed $ 49,000. The employer determines the special rights in the case of a 401 (K). The major benefit of a 401 (K) is the ability of an employee to contribute.

Defined benefit plan

The defined benefit plan provides employees with a good opportunity to save. However, the terms of this plan “specify the amount of the pension benefits to be paid out to plan recipients in the future” (Mathis, 2007, p23). As a result, the recording of the defined benefit plan is complex and, the resulting contribution is unknown until the time in which the contribution is made. Unknown variables, such as the length of service, or the potential earning capacity of an employee, combined with lifespan of the employee after retirement, are difficult to account for. The contribution amount for each employee who partakes in this type of retirement plan is dependent on the plan requirements; however, “after a minimum vesting period, the funds become the ...