Pension plans can be defined benefit plans, where employers promise specific retirement benefits, or defined contribution plans, where employers contribute specific amounts to retirement funds. Pension fund management involves complex investment and funding strategies to balance risks to employers and employees. Reporting requirements have increased transparency around pension costs and liabilities on corporate financial statements.
Dr. Jhansi Rani M R - International CompensatIon (Module VI B)MRJhansiRani
Dr. Jhansi Rani M R, Dr. M. R. Jhansi Rani, Approaches of international compensation, key components of an International compensation program, executive compensation.
Dr. Jhansi Rani M R - International CompensatIon (Module VI B)MRJhansiRani
Dr. Jhansi Rani M R, Dr. M. R. Jhansi Rani, Approaches of international compensation, key components of an International compensation program, executive compensation.
NASPP Webcast Bankruptcy 101 for Compensation ProfessionalsEdward Hauder
This presentation provides an overview of what happens to typical compensation elements in a bankruptcy and walks through some of the basics of bankruptcy from a compensation professional's poitn of view.
Forward-‐thinking defined contribution retirement plan sponsors are recognizing the benefits of communicating to employees in a language
they can understand: monthly income. Investment solutions focused on income fundamentally improve the participant experience and ultimately deliver better outcomes.
Top10 SMSF strategies for 2011/12 presentation conducted by Aaron Dunn of The SMSF Academy in conjunction with Business Fitness.
Download a copy of the free webinar, by visiting http://thesmsfacademy.com.au/free-webinars/
This presentation was used by Ed Hauder at the National Association of Stock Plan Professionals' Chicago Chapter meeting on December 8, 2009. In it Ed walks through the newly announced policy updates from RiskMetrics Group for 2010 as well as their Compensation FAQs, and then covers tips to get shareholders to approve equity plan proposals.
In today’s retirement plan industry, the unaddressed segment of the market is the one–third of private sector workers without
access to retirement benefits and Multiple Employer Plans (MEPs) are the disrupting force that can meet their needs.
NASPP Webcast Bankruptcy 101 for Compensation ProfessionalsEdward Hauder
This presentation provides an overview of what happens to typical compensation elements in a bankruptcy and walks through some of the basics of bankruptcy from a compensation professional's poitn of view.
Forward-‐thinking defined contribution retirement plan sponsors are recognizing the benefits of communicating to employees in a language
they can understand: monthly income. Investment solutions focused on income fundamentally improve the participant experience and ultimately deliver better outcomes.
Top10 SMSF strategies for 2011/12 presentation conducted by Aaron Dunn of The SMSF Academy in conjunction with Business Fitness.
Download a copy of the free webinar, by visiting http://thesmsfacademy.com.au/free-webinars/
This presentation was used by Ed Hauder at the National Association of Stock Plan Professionals' Chicago Chapter meeting on December 8, 2009. In it Ed walks through the newly announced policy updates from RiskMetrics Group for 2010 as well as their Compensation FAQs, and then covers tips to get shareholders to approve equity plan proposals.
In today’s retirement plan industry, the unaddressed segment of the market is the one–third of private sector workers without
access to retirement benefits and Multiple Employer Plans (MEPs) are the disrupting force that can meet their needs.
Marco cimino zasqr presentacion marcasMarco Cimino
Si nos pidieran una definición de zasqr en 140 caracteres (sin contar los espacios) diríamos:
Generar puntos de contacto entre marcas y personas a través de experiencias reales que aportan valor y lo restituyen a través de las redes sociales.
Zasqr permite a las marcas generar experiencias offline pensadas para aportar algún tipo de valor a las personas, que a su vez podrán socializar la experiencia a través de sus contactos en las redes sociales, devolviendonos así el valor en términos de difusión y notoriedad de la marca.
Zasqr no es un código QR, es una red social de valor basada en experiencias. Pero zasqr también es una plataforma de mobile marketing (marketing móvil) muy potente, que permite generar acciones promocionales, fidelización, captación totalmente orientadas al mundo Offline. Con zasqr, en cuestión de minutos, es posible crear un concurso, un premio instantáneo, captar suscriptores de una newsletter o tarjeta de puntos, recopilar opiniones y comentarios de nuestro clientes y mucho más. Y todo de una manera muy simple: desde el propio móvil, con un solo click!
¿Cuantas veces hemos pensado en el mecanismo que nos asegure que nuestro mensaje llegue a destinación, sin acabar en la papelera antes de ser leído? Hemos trabajado el aspecto de nuestros flyers, los contenidos, el formato. Hemos inventado decenas de formulas distintas.
Pero muchas veces el cristal que separa la persona que pasea en la calle de nuestra acción promocional impresa y colocada en un expositor se ha convertido en una barrera insalvable. Zasqr nos brinda la oportunidad de diseñar una experiencia única, fácil y directa y dejar que sea cada persona que decida si quiere o no aprovecharla.
¿Queremos saber de primera mano, sin intermediarios, qué opinan nuestros clientes de nuestro punto de venta o del servicio que han recibido en nuestros hoteles? Será suficiente colocar un código zasqr que permite expresar una opinión, asegurando los mecanismos de análisis de los resultados y propuestas de mejora.
La promesa de una mejora del servicio, la posibilidad de recibir atención personalizada o simplemente el reconocimiento social que otorgan las redes pueden ser elementos suficientes para generar “engagement” con nuestros “fans”
¿Queremos que nuestros lectores participen “desde la calle” a los sondeos que proponemos en nuestro diario o magazine?
¿Queremos además que quien participe desde la web pueda saber lo que está opinando en todo momento quien está leyendo el diario?
¿Nos gustaría que la versión offline y online de nuestra publicación tuvieran capacidad de interacción? Zasqr nos puede ayudar.
Imagina ahora que tus clientes pudieran ojear un libro en la estantería de tu tienda y finalmente optar por llevarse la versión digital sin la necesidad de pasar por caja!
Imprime un código zasqr y cuélgalo en la estantería. Tus clientes tendrán la libertad de decidir entre una y otra versión. Fácil, seguro.
Sedgwick Middle School Career Fair 2014Kyla LoPresti
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The mechanical engineering program at the Rochester Institute of
Technology is designed to equip students with a broad base of
science and engineering knowledge complemented by hands-on
laboratory activities, a capstone graduation project, and
cooperative training experience. Students devote their rst two
years to the study of mathematics, physics, liberal arts, and
engineering sciences.
http://www.rit.edu/dubai/academics/mechanical-engineering-bs
Discuss the tax consequences of qualified pension or profit sharing pl.docxwviola
Discuss the tax consequences of qualified pension or profit sharing plan to the employee, the employer, and the trust. (source needed)
Solution
Qualified retirement plans give employers a tax break for the contributions that they make for their employees.
Qualified plans that allow employees to defer a portion of their salaries into the plan also reduce employees\' present income tax liability by reducing taxable income.
These planshelp employers to attract and retain good employees.
Qualified pans come in two types:defined benefit and defined contribution. Defined benefit plans give employees a guaranteed payout, and place the risk on the employer to save and invest appropriately to meet plan liabilities.
Under defined contribution plans, the amount employees receive on retirement depends on how well they save and invest on their own during their working years A 401 ( k) plan is an example of a defined contribution plan.
Whether the plan makes use of a trust or is funded by employer purchased annuities, an employee is generally not taxed until the amounts are distributed or made available to him. To prohibit plan participants from using plans as a mechanism for passing wealth on to the next generation, rather than as a source of income during retirement, Internal Revenue Service regulations require plan participants to take required minimum distributions from qualified plans once they reach the required beginning date described in the regulations.
The trust must be valid under State Law and a ll beneficiaries of the trust must be individuals, and the trust must be irrevocable by its terms upon the participant\'s death.
.
An effective retirement plan is one of the best benefits an employer can offer its employees. It can help the employer recruit and retain a competitive workforce, and establish an environment that promotes employee satisfaction and productivity. An intentional policy of creating and implementing an effective educational program regarding the plan through an education policy statement benefits both employees in helping them secure a comfortable retirement, and employers as an aid to meeting their fiduciary duties to plan participants in a highly complex regulatory environment.
AALU Washington Report: Death Benefit Only Plans - Fulcrum Partners LLCFulcrum Partners LLC
Death Benefit Only plans can offer a simple and flexible option for providing benefits to attract or retain key employees. Learn more about who DBO plans benefit and how to implement them, as well as taxation benefits and concerns in this AALU Washington Report published by Fulcrum Partners LLC.
Note: If this publication all links are dead, but you need to download files from this publication, please send me a private message and I'll try to help you or emai to info@presslounge.vn for supporting
Disclaimer: We do not encourage illegal activity. References to a content protected by the copyright law, are given exclusively in the fact-finding purposes. If you liked the program, music or the book – buy it.
Executive Compensation at Financial InstitutionsDavid Stone
Executive compensation at U.S. companies has become dramatically disproportionate relative to the average workers at those companies over the past 25 years. Now, the current global financial crisis is putting a harsh spotlight on executive compensation at financial institutions in particular. This report looks at the basic nature of executive compensation packages and the issues or concerns that have been raised about them. That information provides a context for looking specifically at financial institutions: what makes their executive compensation programs different and how the current financial crisis is going to affect those programs.
A Road Map to Major Changes Coming to Multi-Employer Pension Plans: What Part...Polsinelli PC
To address the severe underfunding of multi-employer pension plans and the teetering finances of the Pension Benefit Guaranty Corporation ("PBGC"), the Multi-Employer Pension Reform Act of 2014 ("MPRA") was enacted last December in the most significant legislation affecting these plans since 1980. Among other changes, the MPRA gives troubled funds the ability to reduce the pension benefits of participants, including benefits for some retirees already in pay-status. It also gives additional flexibility to the PBGC to help underfunded plans by providing its financial assistance and facilitating fund mergers and partitions. There are also special rules under MPRA that may impact an employer's withdrawal liability.
This webinar, presented by Employee Benefits and Executive Compensation chair Andrew Douglass and Labor and Employment vice-chair Brad Kafka, discussed how the MPRA changes affect multi-employer pension plans, and specific actions that employers should consider in light of MPRA changes taking effect this year.
Five Common Questions About Deferred CompensationCBIZ, Inc.
Is a deferred compensation plan right for you? Here are five common questions about deferred comp.
Corporate deferred compensation plans for highly compensated employees are a planning tool that companies and key executives should explore. They are attractive because of the significant increase in ordinary income tax rates on compensation. Such plans are also a fringe benefit that can attract and retain key executives.
Discussion Question (250-300 words long) Describe the princip.docxelinoraudley582231
Discussion Question: (250-300 words long)
Describe the principles of fee-for-service plans and managed care plans. What are the similarities and differences?
I want you to discuss and answer this question and to help you to do so I will upload a PowerPoint file helping you to answer this question.
Here are two of the classmates responses to this question read it and try to connect their responses to your answer and discussion.
Gabrielle
Fee-for-service plans (FSS) and managed care plans are both classes of insurance programs. In fee-for-service plans, the doctors and hospitals get paid for the service that they perform and test that they order. This plan provides protection against health care expenses in the form of a cash benefit that is paid to the insurer or directly to the health care provider after the employee has received health care services. However under this plan, the insurance company determines a deductible for the patient to pay and then they are responsible for the remainder of the amount. Under managed care plans, the plans emphasize cost control by limiting the patient’s choice of doctors and hospitals that they can use. The plan provides a list of physicians and hospitals that the plan holder can use at a reduced price.
These plans are both similar because they offer a reduced price for medical and health coverage. Some differences between the two include how a patient can choose a physician or hospital. Under FSS, you can see a physician whenever you want or feel necessary. However, under managed care, when you see only the physicians that are affiliated with the plan, they then receive a strong financial incentive.
Trevor
The principles of a fee-for-service plan include a health insurance programs that that use cash benefits in order to help protect employees of an organization from expense that come from health care. Some things that are covered by this are physician charges, hospital expenses, and surgical expenses. One type of these service plans are indemnity plans. These plans are when the insurance company and the employer have a contract that specifically covers certain expenses. The next type of these plans are self-funded plans. These plans are when a company pays benefits from their own assets. Managed care plans control costs by limiting employee's decisions on doctors and hospitals. Fee-for-service plans and managed care plans are similar because they both provide health insurance for employees. Managed health care plans are more confusing because they have so many specifications, meanwhile fee-for-service plans is more basic that offers cash benefit for expenses.
until after a probationary period of at least three months so that they can prove that they are going to be great asset to the company.
Instructions:
1. Login to our database using the phpmyadmin.soe.ucsc.edu interface.
2. Develop SQL query to answer each question.
3. In a WORD compatible document and for each question:
· State .
This M Intelligence piece will explore the product mechanics and design considerations of Whole Life (WL) insurance. There are two general categories of WL...
Fm11 ch 05 risk and return portfolio theory and asset pricing models
Fm11 ch 29 pension plan management
1. 29 - 1
Pension plan terminology
Defined benefit versus defined
contribution plans
Pension fund investment tactics
Retiree health benefits
CHAPTER 29
Pension Plan Management
2. 29 - 2
They constitute the largest class of
investors.
They hold about 33% of all U. S.
stocks.
How important are pension funds?
3. 29 - 3
Defined benefit plan: Employer agrees
to give retirees a specific benefit,
generally a percentage of final salary.
Defined contribution plan: Employer
agrees to make specific payments into
a retirement fund, frequently a mutual
fund. Retirees’ benefits depend on the
investment performance of their own
fund. 401(k) is the most common type.
Pension Plan Terminology
(More...)
4. 29 - 4
Profit sharing plan: Employer
payments vary with the firm’s profits.
(Defined contribution, but as a
percentage of profits).
Cash balance plan: Employer
promises to put a specified
percentage of the employee’s salary
into the plan, and to pay a specified
return on the plan’s assets.
(More...)
5. 29 - 5
Vesting: Gives the employee the
right to receive pension benefits at
retirement even if he/she leaves the
company before retirement.
Deferred vesting: Pension rights are
not vested for the first few years.
Portability: A “portable” pension
plan can be moved to another
employer if the employee changes
jobs.
(More...)
6. 29 - 6
Fully funded: Value of plan assets
equals the present value of expected
retirement benefits.
Underfunded: Plan assets are less than
the PV of the benefits. An “unfunded
liability” is said to exist.
Overfunded: The reverse of
underfunded.
(More...)
7. 29 - 7
Actuarial rate of return: The rate of
return:
used to find the PV of expected
benefits (discount rate).
at which the fund’s assets are
assumed to be invested.
Employee Retirement Income
Security Act (ERISA): The federal law
governing the administration and
structure of corporate pension plans.
(More...)
8. 29 - 8
Pension Benefit Guarantee Corporation
(PBGC):
A government agency created by
ERISA to ensure that employees of
firms which go bankrupt before their
defined benefit plans are fully funded
will receive some minimum level of
benefits.
However, for high income employees
(i.e., airline pilots), PBGC pension
payments are often less than those
promised by the company.
9. 29 - 9
Financial Accounting Standards
Board (FASB), together with the SEC,
establishes rules for reporting
pension information.
Pension costs are huge, and
assumptions have major effect on
reported profits.
Who establishes guidelines for
reporting pension fund information on
corporate financial statements?
10. 29 - 10
Defined Contribution Plan:
The annual contribution is shown
as a cost on the income statement.
A note explains the entry.
Defined Benefit Plan:
The plan’s funding status must be
reported directly on the balance
sheet.
How are pension fund data reported
in a firm’s financial statements?
(More...)
11. 29 - 11
The annual pension contribution
(expense) is shown on the income
statement.
Details regarding the annual
expense, along with the composition
of the fund’s assets, are reported in
the notes section.
The annual pension contribution is
tied to the assumed actuarial rate of
return: the greater the assumed
return, the smaller the contribution.
12. 29 - 12
Data/Assumptions:
Employee begins work at 25, will work
40 years until 65, and then retire.
Employee will live another 15 years, to
age 80, and will draw a pension of
$20,000 per year.
The plan’s actuarial rate of return is
10%.
Given the following data, how much must
the firm contribute annually (at year-end)
over the employee’s working life to fully
fund the plan by retirement age?
13. 29 - 13
Step 1.
Determine the amount the
firm must have in the plan
at the time the employee
retires. It is $152,122.
15 10 20,000 0
Compute PV = $152,121.59
N I PV PMT FV
Input 15 10 20000 0
Output 152,122
14. 29 - 14
N I PV PMT FV
Input 40 10 0 152122
Output 343.71
Step 2:
Determine the annual contri-
bution during the employment
years. With $152,122 to be
accumulated, the answer is
$343.71.
15. 29 - 15
Graph of Pension Fund Assets
152
0 40 55 Years
Dollars
($000)
16. 29 - 16
Don’t know how long the employee will
work for the firm (the 40 years).
Don’t know what the annual pension
payment will be (the $20,000).
Don’t know what rate of return the
pension fund will earn (the 10%).
A large number of employees creates
complexities, but it also reduces the
aggregate actuarial uncertainty.
Pension fund management is much
more complex than this illustration.
17. 29 - 17
Defined benefit plan: Most risk falls
on the company, because it
guarantees to pay a specific
retirement benefit regardless of the
firm’s profitability or the return on
the plan’s assets.
What risks are borne by the plan
sponsor and plan beneficiaries under
the four types of pension plans?
(More...)
18. 29 - 18
Defined contribution plan: Places
more risk on employees, because
benefits depend on the return
performance of each employee’s
chosen investment fund.
Profit sharing: Most risk to
employee, least to employer.
Company doesn’t pay into fund
unless it has earnings, and
employees bear investment risk.
(More...)
19. 29 - 19
Cash balance: “Middle of the road”
in terms of risk for both employer
and employee. Employer’s payment
obligations are fixed and known,
while employees are guaranteed a
specified return.
20. 29 - 20
Large, more mature companies (and
governments) tend to use defined
benefit plans.
New, start-up companies tend to use
profit sharing plans.
Many older companies are shifting to
defined contribution and cash
balance plans.
What type of companies tend to
have each type of plan?
21. 29 - 21
Usually set up as a 401(k) plan.
Employees make tax-deductible
contributions into one or more
investment vehicles (often mutual
funds) established by the company.
Company may make independent or
matching contributions.
If a company uses either a defined
contribution or a profit sharing plan,
how are the assets administered?
22. 29 - 22
Defined benefit plans are more costly to
firms when older workers are hired. The
firm has a shorter time to accumulate
the needed funds, hence must make
larger annual contributions.
Does the type of pension plan
influence the possibility of age
discrimination?
23. 29 - 23
Since women live longer than men,
female employees are more costly
under defined benefit plans.
Does the type of pension plan
influence the possibility of sex
discrimination?
24. 29 - 24
How does the type of pension
plan influence employee
training costs?
Defined benefit plans encourage
employees to stay with a single
company, hence they reduce
training costs.
Vesting and portability facilitate job
shifts, hence increase training
costs.
25. 29 - 25
Benefits paid under defined benefit
plans are usually tied to the number of
years worked and the final (or last few)
year’s salary. Therefore, unions are
more likely to work with a firm to
ensure its survival under a defined
benefit plan.
Does the type of pension plan
influence the militancy of unions when
a company faces financial adversity?
26. 29 - 26
How fast should any unfunded
liability be reduced?
What rate of return should be
assumed in the actuarial
calculations?
What are the two components of a
plan’s funding strategy?
27. 29 - 27
To structure the portfolio to minimize
the risk of not achieving the
assumed actuarial rate of return.
A low risk portfolio will mean low
expected returns, which will mean
larger annual contributions, which
hurt profits.
What is the primary goal of a
plan’s investment strategy?
28. 29 - 28
Alpha analysis: Compare the
realized return on the portfolio with
the required return on the portfolio.
Comparative analysis: Compare the
manager’s historical returns with
other managers having the same
investment objective (same risk
profile).
How can a company judge the perfor-
mance of its pension plan managers?
29. 29 - 29
This occurs when a company terminates
an overfunded defined benefit plan,
uses a portion of the funds to purchase
annuities which provide the promised
pensions to employees, and then
recovers the excess for use by the firm.
First used by corporate raiders after
takeovers, with proceeds used to pay
down takeover debt.
What’s meant by “tapping”
pension fund assets?
30. 29 - 30
Some people believe that pension fund
assets belong to employees, hence
tapping “robs” employees. (Excess
funds make it easier to bargain for
higher benefits.)
Courts have ruled that defined benefit
plan assets belong to the firm, so firms
can recover these assets as long as
this action does not jeopardize current
employees’ contractual benefits.
Why is “tapping” controversial?
31. 29 - 31
Because of the increased number of
retirees, longer life expectancies,
and the dramatic escalation in health
care costs over the last ten years,
many firms are forecasting that
retiree health care costs will be as
high, or higher, than pension costs.
What has happened to the cost of
retiree health benefits over the
last decade?
32. 29 - 32
Before 1990, firms used pay-as-you-go
procedures which concealed the true
liability.
Now companies must set up reserves for
retiree medical benefits.
Firms must report current expenses to
account for vested future medical benefits.
The 1990 rule has forced companies to
assess their retiree health care liability.
Many are now cutting benefits.
How are retiree health benefits
reported to shareholders?