Hrm 324 Week 4 Retirement and Communication Plan Essay

1862 WordsSep 7, 20138 Pages
Proposed Retirement Plan Marlena Hedine HRM/324 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…
The employer is also responsible for ensuring that there is at least one trustee that would handle the contribution investment and distribution of the 401(k) plan. Keeping good records of all contributions that are made and put into the account is very important. Recordkeeping helps to keep the system accurate and helps track the earning and loses of the investment plan, and the expenses and benefit distributions to the participants accounts. Employees must have a plan provided to them from their employer that includes all information on eligibility of the benefits and the requirements. The advantages and disadvanages should be stated and a short summary of the plan that will be provided. This is a must in any organization when offering a 401(k) compensation plan. ESOPs ESOP which also stands for Employee Stock Ownership Plan is a retirement plan that is similar to profit sharing. A trust fund is set up through the organization and then the organization contributes new shares to buy new assets or existing stock. An organization is able to borrow money from the ESOP to make cash payments to replay their loans. When a company is looking to pay off current debt or expand business this plan could be beneficial. An ESOP plan gives an organization the flexibility to make the rules and set the requirements of who can gain full access to

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