1. Defined Benefit Plans Reward You for Years of Service. Defined benefit plans are pension plans that reward employees based on years of service and associated salary earned. These retirement schemes pay out a set dividend amount upon retirement for the remaining life of an employee. Alternately, defined contribution plans are retirement plans that establish…
A cash balance pension plan is a type of pension plan provided by employers to employees of a company. This type of plan credits an employee’s account with a set percentage of his or her yearly compensation plus interest charges. A cash balance plan is often referred to as a ‘hybrid’ pension plan because the…
As the holidays approach, it’s time for businesses to consider what year-end, Christmas, or holiday bonuses they’ll give to employees. Providing year-end bonuses can be a great way to motivate employees and reward top performers. Along with deciding criteria for employees to earn bonuses, many businesses need to factor in the effect of bonuses on…
Retirement savings plans are designed to help employees save money to enable a comfortable, secure lifestyle during retirement. From the business sector to NGO organizations many different retirement plans exist. Most commonly people are familiar with 401(k) typically offered by corporations to its employees and IRA’s (both roth and traditional) which are more widely accessible.…
When the first 401(k) retirement plan was established back in 1980, it was envisioned as the third pillar of the retirement savings trinity. Social Security would account for basic expenses, your pension plan would help you maintain your current standard of living, and your 401(k) would provide discretionary funds (i.e. “fun money”). Together, these three…
With so many retirement options available, it can be difficult determining which plan makes best financial sense to you and your family. Today, we’re helping you sort through the confusion to decipher your employer’s 401(k) plan. Should you utilize your employer’s 401(k) retirement plan? In short, the answer is a resounding: YES. We will get…
As a small business owner one of the biggest joys can be seeing your company grow and expand. As your business increases, however, there are additional variables to consider. You may need to start hiring more people to take over duties and responsibilities and it’s important to start the on-boarding process in an efficient and…
When an employee unexpectedly leaves his or her position, whether because of a company decision or on his or her own accord, it can put the company in an extremely difficult position. In today’s post, we’re discussing ways to gracefully handle an employee leaving the company. We’ll explore the proper legal etiquette, benefits, and procedures…
AM I A PLAN FIDUCIARY? If you exercise control and decision-making power over the organizations retirement benefits and plan, then you are most likely a plan fiduciary. Most who are fiduciaries may not have this title within the company or organization. Regardless of the title you hold, fiduciary status is based on the functions that…
Once a staple of the American workforce, benefit Plans – more commonly referred to as pension plans – are quickly becoming the lesser known and least utilized retirement fund. In comparison to more popular retirement funds like 401(k) plans and IRA’s, the benefit plan is lagging behind. In large part the decline of benefit plans…