Essay about Assignment 1

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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 …show more content…
If the employer didn’t feel this plan was more of a risk these would be more an ideal plan for employees. Why do you feel that they should be protected though? What rights do you mean regarding union members? And do you mean to say that those rights are related to the DB plan?
C) Yes indexation should be legislatively required for all defined benefit plans. This would help protect pensioners to receive full protection under the terms of their plan. Right now only 17% of all members are fully protected. 35% are partially protected so having it the same for everyone would be a step in the right direction. (in the future on your assignments, please cite/reference where you retrieved information like this, anything that isn’t common knowledge has to be cited). This would give employees more benefits and employers a even playing field to recruiting and how they treat pensioners. Collective bargaining is the right way to go and can be avoided by legislatively. (sentence unclear – is collective bargaining the way to go because it’s good, and if so, why do you think it should be avoided?) This way inflation can have a set standard and people are not getting taken advantage of by sponsors. What argument would you put forward to the idea that indexing might be costly for employers?
Question 3 Please identify which plan you used just to be clear during grading. A) The pension formula is below.
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