Hrmt 208 Assignment 1

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Question 1 - Tundra Exploration, Inc. Scenario Plan A - Negotiated The type of pension plan for I would design for Tundra Exploration for Plan A would be a hybrid plan. Tundra Exploration will pay 3% of the employees final earnings of the calendar year but employees must contribute 5%. This plan will see employees and Tundra Exploration work together to govern a plan in which contributions are managed in order to provide a targeted payout for life in retirement. Employees must be vested to receive requirements and this plan will not integrate with any government benefits. Employees can start contributing to pension immediately upon hire in a permanent full time or part time position. For normal retirement and to receive full pensionable payment employees must be age 65 with a minimum of 15 years of service with the company. For early retirement, employees must have 10 years of service, and may retire at any age but benefits will be lowered by 20%. Maximum pensionable earnings shall be deemed equal to 70% of last full calendar year of service for the company. I choose this pension plan for Plan A as combination plans can greatly benefit the employer and employee. Though combination plans can be confusing, there is no union to work with and though the company has grown significantly in the last 4 years, the number of employees is still under 100. A good pension plan may be beneficial for recruitment in the future. Plan B - Non Negotiated The type of pension plan for I would design for Tundra Exploration for Plan A would be a defined plan. A flat benefit pension plan program will be used. Pension will be calculated at $40 per month contribution and then calculated over years of service. This plan will integrate with government benefits and will not be taxable when pensionable earnings are received. Employees are eligible for this plan immediately

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