Retirement Plan

The company is instituting a retirement plan as part of our ongoing commitment to our employees. At this stage of the process, we have settled on two different plans, and we need the employees to carefully consider which plan they would prefer. The employees will be asked to read over the different plans and carefully weigh the pros and cons of each. This document will provide some information about the three different plans, and will also outline several critical issues regarding this process.

There are two plans from which to choose. The first, Plan A, is a defined contribution plan. This type of plan involves contributions being withdrawn from the employees' pay on an after-tax basis. The reason for this is that when the contributions are made on an after-tax basis, this reduces the tax on distributions in the future (Lambert, 2012). The company will match the contributions...
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