...Retirement Plan Proposal and Communication Plan Lealofi Vaeao-Feagiai HRM/ 324 February 15, 2016 Greg Brainard Retirement Plan Proposal and Communication Plan Retirement planning involves financial preparation and communication development to ensure that specific requirements are fulfilled. In a Retirement Plan, money is put aside in a retirement account in the name of the employee, purposed for the future of the employee. With a good Retirement Plan, an employer can provide a wide range of benefits to a retired employee and motivate employees to experience longevity and decrease turnover rate. With certain requirement mandated by law, employers According to Martocchio (2015), “the importance of employer-provided retirement plans is evidenced by a study showing that employees with employer-provided retirement plans are more likely to have sufficient savings for a comfortable retirement than those who do not have these plans” (pg. 465). This paper will discuss a proposal describing two retirement plans, identify specific requirements of the Employee Retirement Income Security Act of 1974; and a design of a communication plan and encouraging employee participation. Retirement Plans The Retirement Plan provides an employee financial stability and assistance once they retire. Employers initiate retirement plans for employees as either Defined Benefit Plans or Defined Contribution Plans. Defined Benefit Plans will guarantee retirement benefits to an employee...
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...Retirement Plan and Communication Proposal Ebony Brown HRM/324 January 24, 2012 Jocelyn Freimark The design of a company’s benefits program is important to ensure the plans fit the structure of the company and the needs of its employees. Being a new company starting with 150 employees it will be important to design a varied and comprehensive retirement program that will not only address the needs of the company’s current employees, but will also attract potential employees, and be affordable for the company. Qualified plans “entitle employers and employees to substantial tax benefits” (Martocchio, 2009, p. 3), because neither has to pay taxes on contributions within a dollar limit outside of defined contribution plans. As an additional benefit, investment earnings are tax free and participants and their beneficiaries do not pay taxes on retirement benefits until the funds are received. There are two types of qualified retirement plans: defined benefit plan and defined compensation plan. A challenge of the defined benefit plan is that it may prove to be more costly for employers as employer contribution rates fluctuate yearly and requirements may be difficult for employers to ensure all the funds are available for participants or beneficiaries to receive. In this case, the best retirement benefit design option is the defined contribution plan. Under the defined contribution plans “employers and employees make annual contributions to separate...
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...Registered Retirement Savings Plan (RRSP) Submitted By: Instructor: Date: What is an RRSP? A Registered Retirement Savings Plan (RRSP) is a tax-deferred account designed specifically for retirement savings. Any resident of Canada under the age of 71 who has earned income may establish and contribute to an RRSP. (Edward Jones, 2013) RRSPs are the Canadian government's way of helping citizens save their money for retirement. Saving for 30 to 40 years of retirement may seem like a long task, but well-planned contributions and withdrawals from your RRSP can be a great way to get enough money for when you retire. Objective The objective of a RRSP is to provide individuals with an account which they may contribute Tax deferred dollars that may be used for retirement. (Edward Jones, 2013) Types of RRSP’S Here are 3 types of RRSP: * Individual – This is the most common type of RRSP. It is an RRSP that is registered in your name. All investments, contributions, and tax advantages belong to the person the account is named under. * Spousal - This is a way for spouses to split income more evenly during retirement. The combined income tax would be lower compared to paying as a single RRSP. To qualify for a spousal RRSP you must have lived with each other for at least 12 months, have a child together by birth or adoption, or share custody of the other spouses child from a previous relationship. * Group – This is offered to help employees save for retirement. This works...
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...| | | | ------------------------------------------------- Top of Form Assessment >> Formal Assessment | | Assessment: End-of-unit formal assessment: Unit 4 (C192V10U4L0A25Q10) | Date Submitted: | 10/29/2011 09:01:00 PM | Total Correct Answers: | 1 | Total Incorrect Answers: | 4 | Your Mark (total correct percentage): 20% | | 1 | Once the Feltham's discharge their mortgage, what tax planning opportunity would be MOST APPROPRIATE during the years that immediately follow? | Incorrect | The correct answer: Mark maximizes contributions to a spousal RRSP for Sarah; Sarah maximizes contributions to her RRSP Your answer: Mark maximizes contributions to his TFSA only; Sarah maximizes contributions to her RRSP | 2 | Based on an analysis of Sarah and Mark's assets, from what tax advantages does the couple currently benefit? | Correct | The correct answer: deferral and avoidance only Your answer: deferral and avoidance only | 3 | If Mark exercises his 12,000 stock options at $39 and sells the underlying shares at the same time, what will his after-tax proceeds be? | Incorrect | The correct answer: $27,720 Your answer: $252,720 | 4 | In reviewing Sarah's method of remuneration from Cognitive Solutions, what statement is MOST APPROPRIATE? | Incorrect | The correct answer: Sarah should continue with her current form of remuneration as doing so creates RRSP contribution room for her. Your answer: Sarah should forego a salary and...
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...CHAPTER 6 – RRSP & OTHER SAVINGS PLANS Why a limit? * Each individual is only entitled to save a specified amount in a registered retirement savings plan * Through pension adjustment (PA), those who participate in employer sponsored plan are limited in how much they can give to RRSP * Limit is based upon earned income in prior year * RRSP contribution limit is cumulative....any amounts not used can be carried forward; therefore, all Canadian taxpayers should try to accumulate contribution room as early as possible. How about investment income???? Is that the same???? Not quite.....why??? The income earned on investments is not “earned income” --- which can be broadly defined as income that was “actively earned”. This leads us to the review of the formula for RRSP contribution limit and the definition of “earned income”. RRSP Contribution Limit: * Start with: * Lesser of: * A) 18% of prior year’s earned income (see below) * B) 2013 money purchase limit * Less: pension adjustment for prior year (from Module #5) * Less/add: PSPA (module #5) * Add: unused RRSP contribution room (carryover of amounts earned but not contributed) * Can be made from January of THAT year to 60 days afte the beginning of next year - contriubtions made in the first 60 days of the year can be used for previous year or the year of contribution Earned Income - Defined: * Generally, excludes income that is earned...
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...funding mechanism for TRS pensions. Preliminary estimates indicate that for TRS alone, the proposal would save the state budget $54.1 billion to $57.7 billion over the next several decades and erase the unfunded liability of TRS and the other state pension systems by 2043. Senate Bill 1673 applies to both active members and retired members already receiving an annuity. Here is a menu of proposals lawmakers are considering for the bill that would affect active TRS members: Active and Retired Members – This proposal would apply the legislation’s provisions to both active members and retired members who are receiving an annuity. A Benefit Choice for the Future: COLA and Health Insurance – This proposal calls on all active, inactive and retired TRS members to choose between two options in the make-up of their retirement benefits after July 1, 2013. This irrevocable, one-time election would have to be made between January 1, 2013 and May 31, 2013. This proposal would save state government an estimated $33.4 billion to $37 billion over 30 years. * Option 1: Accept a change in the annual Cost Of Living Adjustment (COLA) for a TRS pension – from 3 percent compounded to a COLA that is capped at 3 percent or one-half of the consumer price index, whichever is less. The COLA would not be compounded. The TRS member retains “access” to state-supported health insurance through the Teachers’ Retirement Insurance Program. For active members, all future salary increases will be used to calculate...
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...Final Sales Paper MRKT 412-02 October 27th, 2015 A. Sales Call Objectives PRIMARY OBJECTIVE: To sell Graham Tire of Fairmont property and casualty insurance for their business. ALTERNATIVE OBJECTIVE 1: To get Graham Tire to agree to a second meeting to have a detailed proposal presented to top management that makes the buying decisions for the company. ALTERNATIVE OBJECTIVE 2: To establish a good connection with Graham Tire associates and follow up with Graham in the future, with the objective of a future sale. B. Company and Product Information Company: Federated Insurance Federated Insurance offers insurance to a variety of businesses. Property and casualty, life insurance, and group health are primary services Federated provides. Federated is based out of Owatonna, MN and are a nationwide company. Product Line: Insurance Product: Property and casualty, life insurance, business insurance Package Contents: Dependent on the specific business and what needs they have. The proposal will be for property and causality insurance for this role-play example. C. Customer Profile Company: Graham Tire This company offers a range of services dealing with motorized vehicles and care of these vehicles. This company has a large inventory of tires and owns tools to complete services on all types of vehicles. Graham Tire specializes in cars, trucks, and tractors. Goodyear tires are primarily carried at this business. Purchasing...
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...______________ Pursuing Universal Retirement Security Through Automatic IRAS and Account Simplification Testimony before The Committee on Ways and Means United States House of Representatives April 17, 2012 David C. John Senior Research Fellow The Heritage Foundation I am David C. John, the Senior Research Fellow for Retirement Security and Financial Institutions at The Heritage Foundation. In addition, I am also the Deputy Director of the Retirement Security Project (RSP). The views I express in this testimony are my own, and should not be construed as representing any official position of The Heritage Foundation or RSP. Chairman Camp and Ranking Member Levin, I appreciate the opportunity to testify before you on ways to increase retirement savings opportunities for all Americans. With the continued decline in the number of Americans covered by employer sponsored defined benefit plans, millions of individuals whose employers don’t offer any way for them to save for retirement at work, and Social Security’s continued financial problems1, it is crucial that the Congress develops a common strategy to expand retirement savings in a manner that transcends ideological and partisan differences. In 2006, a bipartisan majority in Congress eliminated barriers to the use of automatic enrollment and similar automatic techniques in retirement savings plans with the result that millions more Americans are both saving and building retirement security. The results have been stunningly...
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...d Research Proposal PENSION-WITHDRAWAL 2014 SAAMIRA IDREES (000032407) Bachelor of Business Faculty of Management and Computing 30th March 2014 Contents Abstract ................................................................................................................................................... 3 1.0 2.0 2.1 2.2 3.0 3.1 3.1.1 3.1.2 3.2 4.0 4.1 4.2 5.0 5.1 5.1.1 5.1.2 5.1.3 5.2 5.3 6.0 6.1 6.2 7.0 8.0 8.1 8.2 8.3 9.0 10.0 10.1 10.2 Introduction.................................................................................................................................. 3 Problem Statement and Rational for the Research ....................................................................... 4 Problem Statement ...................................................................................................................... 4 The Rationale for Research.......................................................................................................... 4 Objectives of the Study and Hypothesis ........................................................................................ 5 Research Objectives .................................................................................................................... 5 Main objective..................................................................................................................... 5 Secondary Objectives.............................................................................
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...state of the military retirement system was developed during a time when the United States had a small military and the life expediency of a retiree was around a decade after retirement. Unfortunately following the end of World War II the United States has inquired and maintained a large productive military with numbers so large that many of the service members qualify for retirement benefits. Military retirement pay is unlike civilian retirement pay systems. First of all there is no vesting in the military retirement system or no special retirement accounts, with a matching funds provision and no interest. One must either qualify for retirement by honorably serving their country for 20 years or more in the military. If a soldier is discharged from the military with 19 years, 11 months, and 27 days of service, for example, the soldier do not qualify for retirement pay but instead the soldier may be entitled to an early retirement program, these programs are designed to reduce the size of the armed forces. To say the least in many cases our soldiers are living well past the twenty years or span after their retirement from the military and there medical disability discharge. This has resulted in a massive growth in retirement pay and the cost associated with that pay. For the current service member today the personnel costs are approximately forty percent of their annual budget, retiree costs are a large part of those personnel costs. The retirement system for our service...
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...to the President for Economic Policy at the National Economic Council; and Wilcox was formerly Assistant Secretary of the Treasury for Economic Policy. Table of Contents Page 1. Introduction 2. Budget Outcomes and Projections Improved Budget Picture Sources of Improvement 3. Budget Deficit Reduction: 1990 through 1997 OBRA90 OBRA93 What Did Deficit Reduction Ultimately Accomplish? The Republican-Controlled Congress BBA97 4. Entitlement Reform and Saving Social Security First Entitlement Commissions Social Security Saving Social Security First 5. Social Security Reform Options Using Projected Budget Surpluses as Part of Social Security Reform Investments in Private Financial Assets Potential Compromise Reform Proposals The 1999 State of the Union Social Security Proposal 6. Budget Surpluses: 1998 through 2000 The 1999 State of the Union Budget Framework Balancing the Budget Excluding Social Security Fiscal Policy in 2000 A National Asset 7. Conclusion References Tables Figures 1 3 9 24 40 63 78 80 84...
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...large scale national example, there is also an obvious connection between increased savings and families who are able to overcome financial obstacles and decrease overhead. For the average consumer, financial security means little to no debt, increased credit, increased education, home ownership and retirement options. In a perfect world, people would benefit directly and completely from their hard work and efforts to better themselves and their lifestyles. Nearly every American, and non-American for that matter, believes that if they work hard enough and save enough money, they will have opportunities to move upwards on the social economic ladder. The potential for a better future is the primary reason for most Americans to even attempt to save money in the first place. Unfortunately, current policies that support the achievement of such goals are inefficient and unequal. Current tax codes are too multifaceted and they shower profits on consumers who make the most money while failing to create proper incentives for average and lower income homes. Historically, efforts have been made on more than one occasion to incentivize savings, beginning with the Individual Retirement Accounts or IRA’s created by Congress in the mid-1970s. These...
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...pension plans discount their pension liabilities at high interest rates assuming the plan will achieve high returns on their investments. However discounting is supposed to reflect the idea that a liability is being paid. If someone knows for sure that a payment will come at a certain time in the future, he will put away the full amount needed in order to pay that obligation; however, if there is reason to believe the payment may not come thru, he may put away a smaller amount in the hopes that he can cover the rest when it comes due. However, in the case of pensions the payments are guaranteed by law, the government having the money or not, thus it is inappropriate to discount them at a high rate. People depend on this money for their future. The high discounts rates let politicians off the hook by lowering today’s payment on behalf of tomorrow’s retirees which is easy to do when you are not suffering currently, and the expectations of the future can be mislead and perceived highly than it should. America’s public pension crisis has arrived. A large number of municipalities, counties and states are experiencing severe fiscal stress. Some, like Detroit, have had to declare bankruptcy. At the end of 2013, Judge Steven Rhode’s ruled that Detroit may reduce pensions under Chapter 9 bankruptcy because they can no longer afford to pay benefits as it’s promised. Detroit’s unfunded pension liabilities are immense at $9 billion on a guaranteed to paid basis. The proposal plan of adjustment...
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...Future Financial problem of Social Security and Mill’s Greatest Happiness Principle Perhaps one of the most pressing issues that confront the future of the Social Security is its financial health. The recent 2014 Social Security report indicates that both the retirement and social security trust fund of the agency threatens to become exhausted by 2033. According to the report, while the retirement program of the Social security is fully funded for the next 19 years, its surplus fund will start to deplete as the retirements of the baby boomer accelerate. At which point, the agency’s current revenue would only be enough to sustain only 77 percent of the retirement benefits; while its disability program can only accommodate 75 percent of its promised benefits. Coming from this context, it is therefore of utmost importance for the Congress to enact reforms in order to put the agency’s programs back into balance (Kurtzleben 1). The pending financial problem of Social Security brings into mind the philosophy of John Stuart Mill. Mill clearly endorses the concept of utilitarianism that asserts that duty or right action is to be defined in terms of the promotion of happiness. One of the main principles of Mill centers on the idea of “greatest-happiness” which asserts that an individual must always act in such a way that the action will produce the greatest aggregate happiness among everyone. Under his conception of utilitarian, the acts are classified as either morally right or wrong...
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...Gomez Superintendent YISD 123 Fake Street El Paso TX, 79936 Dear Dr. Gomez: Financial Literacy of El Paso (FLEP) is pleased to present this proposal for services to support the City of El Paso in achieving its goals for improving the financial literacy from youth to senior citizens by providing advocacy, research, standards and educational resources. The objective of the proposed personal high school finance class is to help high school students develop the ability to use knowledge and skills to manage financial resources effectively throughout their lifetime. In the past, high school students have been required to take an economics class which helped them get a basic understanding of the world of economics in today's world. We are now seeking to have a finance class which will not only help students get a basic understanding of finance but help students use the skills they develop to help them manage their personal finances responsibly. FLEP has partnered up with GECU, a local financial institution, to make this class possible. The class will teach students the basics of finance as well as teach students how to spend, invest, and save money effectively. The class will include setting up savings and checking accounts with GECU for the students and provide them with special support with their accounts. Our proposal requests that the FLEP personal high school finance class be a required course in the high school diploma curriculum. Thank You, Sincerely, Omar...
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