Retirement Paper

There are many advantages of 401 (k) plans, both for employees and their employers. One major important benefit is that the employee has control over how much money they contribute to their account. In addition all employer contributions and any growth in the capital grow tax-free until withdrawal. If the company matches contributions, it's like getting extra money on top of your salary. Also, unlike a pension, all the savings can be moved from one company's plan to the next (or to an individual retirement account) if a participant changes jobs (Neiters). Another benefit can be that employees can reduce their taxes because they are reducing their taxable income while they are working and because they will be in a lower tax bracket when they begin making distributions. "The major cause for the huge popularity of

Often the state will provide for the immediate support of the family when a breadwinner dies, state law generally contains a mechanism for immediate access to money from the decedents estate known as family allowance. In this instance Rooney has 4 children that survive him it is not clear that any of these children were being supported by their father to fall under the designation of breadwinner. Emily is the twin of Martha. Emily Rooney born 1950 is an American journalist, TV talk show and radio host and former news producer. Since 1997, Rooney has been the host, executive editor and creator of Greater Boston and the weekly Beat the Press on WGBH-TV, which are also later rebroadcast on the Boston-based WGBH radio station. As of 2010, she hosts the Emily Rooney Show on WGBH radio. She has an identical twin sister, Martha, who is Chief of the Public Services Division at the United States National Library of Medicine in Bethesda, Maryland. Her brother Brian Rooney is a correspondent for ABC News. Rooney has one daughter, Alexis. Rooney 's husband, WCVB-TV reporter Kirby Perkins, died suddenly of heart failure July 1997. Here it is not likely that a family allowance will be necessary.

The Employee Retirement Income Security Act (ERISA) is a piece of legislation enacted y the US Congress in 1974, after decades of similar legislation had been proposed and some of which had been enacted, but primarily as a means of addressing gaps in contemporary law and policy regarding employment pensions and retirement accounts (US Department of Labor, 2012). This legislation spells out certain requirements regarding information that retirement plan administrators must provide the participants and beneficiaries so that they can make pertinent decisions or take steps to safeguard their retirement savings, and also places certain guidelines and limitations on the conduct of managers of pension and retirement plans (USDOL, 2012). Government reporting standards and measures to ensure the protection of and proper access to retirement funds are also part of the legislation (USDOL, 2012).

a. i. An employer with a defined-contribution plan pays into the plan either an annual lump-sum per employee or calculates payments based on the employees‟ current wages and or time of service with the firm. Under such a plan, the employer does not guarantee the future amounts employees will receive when they retire. The employees covered by a defined-contribution plan assume the risk for the pension plan‟s financial performance. Under a defined-benefit plan, the employer specifies the size and timing of the payments that the employees will receive when they retire. Typically, these retirement benefits are commensurate with the wages earned by the employee in his or her last few years of employment

Note: If you have been contributing to an IRA, be sure not to withdraw the money early or your taxable income goes up.

The fiduciary relationship of the Trustee is to the protection of the assets at any cost. The Trustee must protect and must diligently invest under the prudent man rules, he cannot ever deal for himself.

Legislators argue that employees are losing out, even though the government requires businesses that terminate pension funds to help pay out benefits employees. According to the collective bargaining agreements labor unions will create employee pension plans and other benefits. Due to the increase in pension and benefit plans per employee, businesses compare rates to the open market. After the retirement of employees, businesses are required to fund pensions because of pension plan agreements. Also, unions can increase pension and benefit plans when negotiating new collective bargaining agreements, continually raising this business cost.

Good day Rowan, I totally agree with you on this one. Saving for retirement is very important on any level whether it be a pension or a contribution plan. Employers seek to find cost effective plans where their responsibilities for retirements are limited. I think they mostly go for contribution plans where the saving is mostly set on the employees rather than employers. Recently Department of Defense rolled out a new retirement system called “Blended Retirement System” unlike the current “High Three System” it reduce your annuity multiplier from 2.5% to 2%. This intern calculates for a typical 20 year service with the current High Three System you would receive 50% of your current High Three average, but only 40% with the new Blended Retirement

For example, “…other public and private sector retirement plans typically do not begin providing an annuity until age 55, 60, or 65…” The next problem with the current retirement plan is that it is an ‘all or nothing’ system. Either a military member serves 20 years and qualifies for benefits or they do not. This is vastly different from many civilian programs currently offered and something that the Department of Defense (DOD) has attempted to remedy with the newly implemented program. Many civilian-based retirement programs offer vesting programs that enable employees to secure retirement benefits after a certain number of years, usually anywhere from five to 15 years. Another issue with the current military retirement plan is its comparability to the private-sector. As stated by FAS, “…private-sector employers who have reduced or eliminated their reliance on defined benefit programs and have focused almost exclusively on 401(K)-type programs…” Additionally, many private-sector companies offer contribution matching up to a certain percentage, assisting employees in saving for retirement. This is not offered in the current military retirement plan. Having discussed the current retirement program the next topic will be the newly implemented retirement program.

3. Begin with 3% of your pay going into retirement savings. Each raise/promotion you get increase it by 1% until you have reached your employer’s maximum match rate. Then add the 1% into an IRA until you have reached the percentage that results in your desired retirement account.

Let’s start with that’s a 402G limits? . This is the total contribution amount allowed in a year per the IRS.

Employers assume responsibility for providing retirement funds in a defined benefits plan. In the plan, a specified amount is set aside for future payments to employees, for life, during retirement. The amount is determine in advance is based on factors such as age, salary, and length of employment. In 2009, the maximum amount to be allotted under the plan was $195,000.

1. In a defined-contribution (DC) pension plan, the employee or employer, or both, make regular contributions to the plan. In the US, employees typically set aside a predetermined percentage of their earnings which is deposited to the plan and the employer will match that contribution. Ultimately, the amount of money available to the individual upon retirement is determined by the performance of their investments. Each employee retains the option to choose how to diversify their investments, while the employer will typically provide a “default allocation” option. The options available are generally very varied, and includes a number of index funds and actively managed mutual funds.

Fiduciary Principle. As part of the legal structure of a business organization, each officer and director of a company has a legal fiduciary duty to act in the best interest of the stakeholders and other employees within the firm. Furthermore, there is also an implied fiduciary duty for every employee within the organization to also act in a way that

Worst case is that you will be unable to borrow at all and could fall prey to unscrupulous loan sharks or be unable to receive help when needed.