Retirement Plan Proposal and Communication Plan, HR

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The response addresses the queries posted in 2111 words with references.

//In this paper, we will discuss about various retirement plans. The paper will also include the presentation of proposal of retirement plans and communication plan to management. We will also include a communication plan that will help in encouraging employee participation.//
Introduction

A retirement plan is a process of planning for retirement, which specifically involves financial planning for an employee of an organization. Commonly, the retirement planning refers to depositing money in the name of each employee into a retirement account. This money is deposited with a purpose of saving money for the future of an employee. A good retirement plan is a combination of a wide range of benefits that are provided after the person is retired from his/her service to the organization. There are many benefits of a retirement plan to a company as well as the employees. With a good retirement plan, employees tend to be motivated to stay for a longer period with a company, thereby decreasing the employee turnover rate.

There are many needs and requirements that should be fulfilled by a retirement plan adopted by a company, so that the employees' and organizational needs can be significantly met. There are three retirement plans and a communication plan that have been offered in this proposal of retirement plan and communication plan to be adopted by the organization with an intent to enhance the participation of employees for one of the proposed retirement plans. There are a number of retirement plans depending upon the needs of an organization (Ezra & Collie, 2009).

Retirement Plans

Retirement plans are those plans that provide benefits to the employees after their retirement to secure their future. These retirement plans are very helpful for the future of employees, as they financially support the employees in the years of their retirement. The retirement plans are proposed by the companies for providing retirement benefits to employees, such as 401(K) plan, defined benefit plan, and profit sharing plan (Ezra & Collie, 2009).
401(k) plan

401(k) plan is one of the most famous and important retirement plans for employees. This plan comes under defined contribution plans of employment based retirement plans. In this plan, employers build a qualified plan for the eligible employees of the organization. These employees contribute some amount from their salary on pre-tax and post tax basis. Sometimes, profit-sharing feature is also added in this plan, and it also includes contributions on the behalf of employers.

Profit Sharing Plan

The organization provides a share of profits to the employees by a profit sharing plan. In order to motivate the employees, the organization can easily use this plan. Any individual who is self-employed or owns a big business is qualified for a profit sharing plan. The employees who have worked for a minimum of 1000 hours in the recent year are also eligible. The employees must not contribute in the case of a profit sharing plan. A quarter of the salary is contributed by the employer, having a limit of $49,000 in this case. In case of a profit sharing plan, the vesting period is decided by the employer (Cassidy, 2006).

Defined Benefit Plan

Defined benefit plan is another retirement plan with an advantage to save. Although the contribution limit in a defined benefit plan is low for the young employees in comparison to the old ones, it still ...