Retirement Plan Proposal and Communication Plan



Retirement Plan Proposal and Communication Plan

Introduction

When we hear about Retirement immediately we think of relaxation without worrying about income. However, in reality the quality of life after retirement depends on the contribution of a person while working. Everyone likes to live a relaxing life with a financial peace in mind after retirement. Today, planning for retirement is an afterthought for most employees. We have seen people also working after their retirement (after the age of 65) because of not correctly planning their retirement which ultimately is affecting the society and entire nation (Milkovich & Newman, 2008). Thus, employers today are struggling to find effective ways so that employees could be encourage and contribute to their retirement plan. It is very important for employers of today to effectively tell about various retirement plans available for their best and bright future.

In this paper being an HR leader of newly established organization I shall be discussing various retirements plans along with the proposal presentation of retirement and communication plan to the management of the organization. Additional this paper will include an effective communication plan that will encourage employees to contribute or participate in the retirement plan. I shall be I shall be following strict regulations mentioned under Employee Retirement Income Security Act of 1974. Designing benefit program of a company significantly should match company's structure and employee needs. As I am new to the company and starting with 150 employee is not an easy task so it will be important for me to design a comprehensive , varied, and affordable retirement program that will not only be addressing the needs of current employee of company but it will also be attracting potential employees.

For effective and best retirement plan for an individual, one organization should consider various retirement plans. Employee retirement Income Security Act of 1974 was established to provide employers a comprehensive and complete guideline related to employee welfare and pension benefits, this act is related to employees of private sector. ERISA provides requirements and protections related to disclosure participation, reporting, benefit accrual, vesting along with funding plan (Martocchio, 2009). There are various standards established by ERIS that an organization should meet in order to receive favorable tax treatment. In addition plan termination is also governed by the ERISA. It is said that a company should always fulfill certain ERISA requirements. For instance, participants should be given relevant information and when it comes to pension of a married person, employer should pay it as a joint and survivor annuity.

Retirement Plans

Retirements plans provide benefits to employees after their retirement, the future of employees is secured with retirement plan. These plans are very important and helpful for employee future as employee get financial support in the years of their retirement. Usually there are three main retirement income sources available to an employee. These sources are: retirement investments, company pension plans, and social security that are also known as 401(k) plans. Companies today are following 401(k), 403(b) plan to ...