Employee Retirement Plan Development – PowerPoint

Agenda

IntroductionIntegrating various factors and variable needed to determine final balance in relation to pay Hypothesize how results can be considered for a possible modification of the plan designDecide what data may be needed from the participants to better assess possible plan strategiesDecide what additional data may need to be provided to participants Describe a basic method that can be used to assess whether the plan is achieving its intended results, pertaining to things such as enhancing recruitment, ensuring employee satisfaction, and improving overall productivityConclusion

Introduction

What will I have when I retire?When will I receive the funds?When can I start participation?How can I learn more about the plan?

More on the target audience

College graduates that are usually in their early 20s are at an advantage, as they have a lot of time.With a good amount of time to save, there is a good chance they will have the ability to save enough to retire comfortably.College graduates are considered the “millennial generation” this age range is comfortable with higher deductibles that requires more cost sharing but lower premiums.

Key Components of Plan Offered

Two types of plans offered, Defined Benefit and a 401(k)To be eligible for the 401(k) any employee may start this at day one of employmentFor full vesting you must have worked for the company for 5 yearsTo be eligible for the Defined benefit you must be21 years of ageWorked 1000+ Hours

Integrating the 401(k) Plan

401(k) Plan variables

Years of investingPercentage investedAnnual percentageEmployer match

401(k) Final Pay Example

Integrating the Defined Benefit Plan

Define Benefit Plan variables

Years of serviceFinal average payBenefit multiplier

Defined Benefit Final Pay Example

Hypothesize how results can be considered

Does the plan factor in cost of living or inflation?How does Social Security factor in this plan?Will employees be satisfied with the calculations of their potential retirement account?

What data may be needed to assess plan strategies?

This plan offers a Defined Benefit as well as a 401(k) option.The employee will be able to retire successfully with this plan even if they do not participate in the 401(k) portion however they may have a more comfortable retirement with participation.

What data may be needed from participants to better assess plan strategies?

Estimated (ROI)Investment strategiesLimitsPenalties

Decide what additional data may be needed to be provided to participants?

Online resourcesLiteratureComparisons

Describe a basic method that can be used to assess if plan is performing

Six Sigma system is a great way to assess how the plan is working and well as the efficiency and effectiveness of the plan.Six Sigma also helps in avoiding variation and lower plan costs if possible. This is done by measuring different concerns such as benefit reimbursement, errors in coverage, the selection of the plan investment options, etc. Six Sigma can also find opportunity for optimizing profitability and growth.Also considering competitors and how their plans match up to the benefit plan offered.Consider the input from survey feedback provided by employees in considering measures to evaluate.

Conclusion

Several employees have requested information regarding their retirement benefitsThis presentation has illustrated how those benefits are structured and how they would pay out upon maturity/retirementThe data from the models of the 401k and defined benefit plan gives employees a chance to give informed feedback for benefit planners and management

References

401k Retirement Calculator(2019). Retrieved from https://www.bankrate.com/calculators/retirement/401-k-retirement-calculator.aspxHow your DB pension plan is calculated(2017). Retrieved from https://www.getsmarteraboutmoney.ca/plan-manage/retirement-planning/pension- savings-plans/how-your-db-pension-plan-is-calculated/