Assignment 1
HRMT 208
Assignment 1
Question 1
Plan A-Negotiated
Type of pension plan would be a hybrid plan. Can you elaborate/provide some information about why you chose a hybrid plan for Plan A? What were the features of the employee group that led you to this plan type?
It would be described under the profit sharing plan which would link the contribution of Tundra to the amount of profitability of the company. Contribution of employees is permitted and will be used for retirement purposes. Tundra will contribute 2% of employee earnings for this plan. The employee can contribute up to 6% of each pay period. This plan will not integrate with any government benefits. You must be vested to receive benefits. You must have one year of full service under Tundra employment and be a part of Tundra by July,2015. Once you are vested there are no age requirements. For normal retirement and to receive full payment you must be age 60 with 15 years of service with the company. For early retirement you must have 10 years of service at any age but your benefit will be lowered by 20%. Employees will receive a 2.5% career average plan as benefits for retirement. Maximum pensionable earnings shall be deemed equal to 70% of last full calendar year of service for the company.
Plan B- Non Negotiated
Type of pension plan would be defined benefit. Career average pension plan, which will be set at 2% of each year under the arrangements of the pension plan. Employees will contribute 5% of each pay period which is required. This plan will integrate government benefits as it will not be taxed when payment is received. Eligibility for this plan is you must be hired by Tundra by July,2015 or receive 1 year of full time work on the job at Tundra. After you receive vesting requirements age will not be a requirement to receive rights. Normal retirement age is 65 for this plan. You must have 20 years of experience once you hit the age of 65 to receive full benefits. To
Assignment 1
Question 1
Plan A-Negotiated
Type of pension plan would be a hybrid plan. Can you elaborate/provide some information about why you chose a hybrid plan for Plan A? What were the features of the employee group that led you to this plan type?
It would be described under the profit sharing plan which would link the contribution of Tundra to the amount of profitability of the company. Contribution of employees is permitted and will be used for retirement purposes. Tundra will contribute 2% of employee earnings for this plan. The employee can contribute up to 6% of each pay period. This plan will not integrate with any government benefits. You must be vested to receive benefits. You must have one year of full service under Tundra employment and be a part of Tundra by July,2015. Once you are vested there are no age requirements. For normal retirement and to receive full payment you must be age 60 with 15 years of service with the company. For early retirement you must have 10 years of service at any age but your benefit will be lowered by 20%. Employees will receive a 2.5% career average plan as benefits for retirement. Maximum pensionable earnings shall be deemed equal to 70% of last full calendar year of service for the company.
Plan B- Non Negotiated
Type of pension plan would be defined benefit. Career average pension plan, which will be set at 2% of each year under the arrangements of the pension plan. Employees will contribute 5% of each pay period which is required. This plan will integrate government benefits as it will not be taxed when payment is received. Eligibility for this plan is you must be hired by Tundra by July,2015 or receive 1 year of full time work on the job at Tundra. After you receive vesting requirements age will not be a requirement to receive rights. Normal retirement age is 65 for this plan. You must have 20 years of experience once you hit the age of 65 to receive full benefits. To