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Retirement Plan Proposal

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Running Head: RETIREMENT PLAN PROPOSAL 1

Retirement Plan Proposal

Name of Author

Institution Affiliation

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RETIREMENT PLAN PROPOSAL

Proposal

As a Human Resource Specialist, the management asked me and my team to provide a

proposal that covers retirement benefits plan for 150 employees in the newly formed

organization. They require various plans that will be of importance to a majority of the

employees during retirement period. The types of major retirement plans that are available and

normally considered for the employees include the Social Security plans normally sponsored by

the Government, individual/ personal plans, annuities provided by major insurance companies

and various employer-sponsored plans (The United States, 2001)

The organization is therefore, more likely to dwell on the three qualified employer-

sponsored plans i.e. money purchase pension plans, defined contribution plans and the profit

sharing plans. Money purchase pension plans is a form of a plan where most of the employees of

the organization will be making contributions basing on their individual earnings or

compensation every year. It is always based on a number of terms stipulated by the organization

as it involves employers deciding on the amount to be contributed annually. The terms of the

plan can be estimated towards a certain percentage agreed by the stakeholders and a set

maximum of income that need to be attained in order to purchase the pension plans. Moreover,

the duration of which the employees shall be deemed fit for the registrations is always mandatory

for instance a period of 2 years of employment. They will also be provided with a scheduled time

for the withdrawal of funds from their plans some of which will not have tax penalties attached

to them. This plan is usually considered to experience greater savings especially for the

employees as compared to the other types of non-qualified plans (The United States, 2001).

It will also be appropriate for the organization to consider defined contribution plans. The

company will be responsible for allocating a specified percentage amount of earning in order to

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Running Head: RETIREMENT PLAN PROPOSAL Retirement Plan Proposal Name of Author Institution Affiliation 1 2 RETIREMENT PLAN PROPOSAL Proposal As a Human Resource Specialist, the management asked me and my team to provide a proposal that covers retirement benefits plan for 150 employees in the newly formed organization. They require various plans that will be of importance to a majority of the employees during retirement period. The types of major retirement plans that are available and normally considered for the employees include the Social Security plans normally sponsored by the Government, individual/ personal plans, annuities provided by major insurance companies and various employer-sponsored plans (The United States, 2001) The organization is therefore, more likely to dwell on the three qualified employersponsored plans i.e. money purchase pension plans, defined contribution plans and the profit sharing plans. Money purchase pension plans is a form of a plan where most of the employees of the organization will be making contributions basing on their individual earnings or compensation every year. It is always based on a number of terms stipulated by the organization as it involves employers deciding on the amount to be contributed annually. The terms of the plan can be estimated towards a certain percentage agreed by the stakeholders and a set maximum of income that need to be attained in order to purchase the pension plans. Moreover, the duration of which the empl ...
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