美国人力资源管理—福利管理-教学课件5.ppt

1、,Employer-Sponsored Retirement Plans,Chapter 5,McGraw-Hill/Irwin,Copyright 2011 The McGraw-Hill Companies, Inc. All rights reserved.,Noelle Baker, Contributing Editor,5-2,LEARNING OBJECTIVES,Differences between qualified and non-qualified plans Features of defined benefit plans and defined contribut

2、ion plans Specific types of defined contribution plans Hybrid plans current negotiations reflect the economic downturn and ability of the company to pay for those benefits in the short and long term. Service-oriented and good producing industries have grown; however their workforce either do not hav

3、e retirement plans offered to them and/or their participation rate is quite low.,Noelle Baker, Contributing Editor,5-7,TAXES,Employers and employees do not pay tax on their contributions within dollar limits that differ for defined benefit and defined contribution plans. In addition, the investments

4、 earnings of the trust in which plan assets are held are generally exempt from tax. Finally, participants or beneficiaries do not pay taxes on the value of retirement benefits until they receive the benefit.,Noelle Baker, Contributing Editor,5-8,Qualified Plan Requirements,Participation Requirements

5、 Coverage Requirements Vesting Rules Accrual Rules Nondiscrimination Rules Testing Key Employee if you leave before this, you get nothing! Gradual Vesting Six year gradual vesting as described in Chapter 4,Noelle Baker, Contributing Editor,5-12,SAFE HARBORS (fairness, equity the text also contains f

6、ormulas for defined benefit plans and defined contribution plans for non-key workers. There are maximum life time accrued contribution and distribution limits; the limits are under legislative review.,Noelle Baker, Contributing Editor,5-13,Examples of Benefit Limits,Pension Protection Act of 2006 Ex

7、tended limits to the employers contributions to both defined benefit and defined contribution plans.,Social Security Integration Permitted disparity rules allows employers to take into consideration Social Security retirement benefits when determining company-sponsored pension benefits.,Noelle Baker

8、, Contributing Editor,5-14,Defined benefit plans,Guarantee retirement benefits specified in the plan document. This benefit usually is expressed in terms of a monthly sum equal to a percentage of a participants preretirement pay multiplied by the number of years he or she has worked for the employer

9、. The plan also includes calculations to project the possible life expectancy of the participant and to adjust the rate to coincide with average expected life span.,Noelle Baker, Contributing Editor,5-15,Flat benefit accrual be proportional to that of normal retirement benefits) Rules are establishe

10、d to discourage a practice known as back loading; a practice where employers pay an employee substantially more during their last years of service in order which inordinately increases the retirement benefit.,Noelle Baker, Contributing Editor,5-17,DEFINED CONTRIBUTION PLANS,Employees or Participant

11、reaches 65th birthday or dob defined by the plan; or Termination of service from the employer.,Noelle Baker, Contributing Editor,5-19,How does the pay out occur?,Lump Sum Distribution (single payment) Annuities (series of payments for the life of the participant or their beneficiary) or income annui

12、ties which are underwritten (assumed) by an insurance company and have a guaranteed monthly amount Periodic Payments (money put in trust fund) Payouts are made to qualified joint survivors and/or to domestic partners per the plan.,Noelle Baker, Contributing Editor,5-20,DEFINED CONTRIBUTION PLANS,Sec

13、tion 401 (k) Profit Sharing Stock Bonus ESOPs SIMPLE Section 403 (b) Tax Deferred Annuities Section 457 Defined plans guarantee retirement benefits as specified in the plan document. The plan contains individual accounts managed by fiduciary. Some plans allow employees to choose the investments made

14、 in their individual portfolios.,Noelle Baker, Contributing Editor,5-21,SECTION 401(k) PLANS ,Also Cash or Deferred Arrangements (CODAS) Defer Income to Defined Contribution Plan For Employees of Private Sector or Tax-Exempt Companies Investment Gains Taxed when Received, Income Invested is Not Taxe

15、d as Income. named after the section in the IRC,Noelle Baker, Contributing Editor,5-22,Profit Sharing Plans,Company profits are distributed to employees from the profit sharing pool; up to 25% of the total gross revenue of the company; Fixed first-dollar-of-profits formula: uses a specific percentag

16、e of either pretax and after tax annual profits contingent upon company reaching its financial goals; Graduated first dollar of profits formula; x% of first X amount of sales; and then X% of the subsequent profits; Profitability threshold formulas only if the profits exceed a predetermined minimum l

17、evel but fall below some established maximum level.,Noelle Baker, Contributing Editor,5-23,STOCK BONUS PLAN,Invest in Company Securities Must Meet Nondiscrimination Test Employees Vote May Like Shareholders May be Basis for 401(k) plan Key is that employees are reinvesting in their own company!,Noel

18、le Baker, Contributing Editor,5-24,ESOPs,Similar to Stock Bonus Plans Except: Borrowed Money to Purchase Stock Used Money for Other Business May be Leveraged or Nonleveraged Company Repays ESOP to Repay Loan,Noelle Baker, Contributing Editor,5-25,SIMPLEs (Savings Incentive Match Plans for Employees)

19、,For Companies with up to 100 Employees no accrual or credit for years of service Federal agencies are considering the issues of whether cash balance plans violate age discrimination statutes.,Noelle Baker, Contributing Editor,5-31,CASH BALANCE PLANS OTHER ISSUES,Problems for older workers when conv

20、erting from defined benefit to cash balance. GAO compared lump sum distributions for a traditional defined benefit plan following conversion at various ages at separation of employment. They found increasing disparity in lump sum distributions for older workers after a conversion from a defined benefit plan to a cash balance plan. Another problem is “wearaway”. According to the U.S. Dept