Hrm 324 Week 4 Retirement and Communication Plan
1837 words 8 pagesProposed Retirement Plan
Aug 27, 2013
Proposed Retirement and Communication Plan
An organization can offer several different types of retirement plans to their employees. There are two types of plans that are most often used such as the Defined Contribution Plan and the Hybrid Plans. The Define Contribution plans are beneficial not only to employees retirement needs but also beneficial to the company at the same time. Section 401(k) plans, Employee Stock Ownership Plans (ESOPs), Profit Sharing Plans, and Stock Bonus Plans. On the other broad of the spectrum we have the Hybrid Plan or the Cash Balance Plans, which may also be …show more content…
An organization must buy back the sock at a fair market value when an employee is no longer working with in the company. The ESOP tax benefits are Dividends are tax-deductible, cash contributions are deductible, contributions used to repay a loan the ESOP takes out to buy company shares is tax-deductible, and contributions of stock are tax-deductible.
As requirement by ERISA Title I Protection of Employee Benefit Rights will be as follows; • Reporting and Disclosure o Summary Plan Description o Summary of Material Modifications o Annual Report o Benefit Statements o 5Annual Funding Notice o Notice of Freedom to Divest Employer Securities • Participation Requirements • Benefit Accrual • Minimum Vesting Standards • Benefit Protections for Spouses • Buyouts, Mergers, and Consolidations • Plan Funding o Funding Requirements for Single-employer Plans o Valuation of Plan Assets o Benefit Limitations in Underfunded Plans o Lump-sum Distributions o Funding Requirements for