Retirement Plan for Great Can. Company Hamilton.

Developing a Benefit and Retirement Savings Plan for Great Canadian Company Hamilton

Answered

Objective of the Assignment

Objective:

The objective of this assignment is to develop an appropriate benefit and retirement savings program for the Great Canadian Company (GCC) Hamilton to support it with achieving its business objectives. Â You are the benefits and pension advisor to the Executive Director of the Great Canadian Company Hamilton.
Â

Scope of the Project:
Â You will prepare a report outlining your benefits and retirement savings plan, as well as the supporting communication plan and the rationale for your recommendations. Â There are 2 parts to the Report:

Part 1: due October 14
Describe the total compensation philosophy for your company
Identify the goals of having a benefit and retirement savings plan
Propose the benefit plan design

Confirm the available benefit plan budget and employee eligibility criteria

Part 2: due December 2
Propose the retirement savings plan design
Select the benefits carrier and retirement savings plan funding approach
Develop the communications strategy and tools, including a plan website

The Great Canadian Organization (GCO), located in Hamilton is a not for profit social housing and relief centre for youth in the main city core. The organization was chartered in 1992 and now has an annual budget of $2,100,000, based on some Ontario government funding and other donations and gifts from major donors and grants.Â

The need for services continues to grow as the cityâ€™s population, particularly unemployed youth, continue to grow. Â

Employment has increased from 50 in 1992 to 75 in 2019; current employee demographics are:

Â	20s	30s	40s	50plus	TOTAL
Full-time (FT)	6	28	20	6	60
Part-time (50% of FT)	2	7	5	1	15
% single	63%	43%	20%	29%	Â
% married to FT	38%	57%	80%	71%	Â

Salaries Based on a 7 hour day

Average hourly pay

$13.25

$16.90

$22.50

$32.50

The Executive Director is concerned about recent information received from a reliable source about a union local representative meeting with some employees in town outside of work hours. Â The Executive Director senses there may be some gaps between what Hamilton offers and what most public sector employers with unions are required to provide. Â

No formal indirect compensation plan or retirement savings plan currently exists. Â Instead, employees are hired based on market rates and the benefits package has been based on government sponsored benefits only.

Your Deliverables:

The Executive Director, with the approval of the Board of Directors, has hired you as the benefits advisor to design a benefits and retirement savings plan with supporting communications to support the company to achieve its many objectives.Â

Consider the following guidelines in creating and writing PART 1 of your report due October 14th:

Â	Required Report Content	Out of 100
1	Write a letter of introduction about your consulting company and what you are going to do for your client. Â This letter generally deals with the â€œscopeâ€ of the project and the specific recommendations you are making. Â	15
2	Identify the total compensation philosophy for your company and the specific goals for having a benefit and retirement savings plan. Â Include a description of the issues that a benefit and pension plan will address and include and assumptions you are making in preparing this Report. Â	15
3	Provide your recommended benefit plan design; this may be fixed or flex, one plan or several â€œjob levelâ€ specific plans. Â Include plan eligibility and other key design criteria. Â	40
4	Prepare a budget for your proposal benefit plan including the supporting reasons for being either under or over the competitive market average budget (as a % of total compensation) for these type of plans. Â	30

Consider the following guidelines in creating and writing PART 2 of your report due December 2nd:

Â	Required Report Content	Out of 100
1	Provide an outline of what is covered in Part 2 of your Report. This is a follow up from Part 1 of your Report and should cover the â€œscopeâ€ of this Part of the project and the specific recommendations you are making. Â	10
2	Describe your recommended retirement savings plan design â€“ this may be a registered pension plan or non-registered plan as one plan or several â€œjob levelâ€ specific plans. Â Include the funding method and annual budget. Â	30
3	Outline a communication plan (strategy, audience, key messages and timing) in support of your proposed benefit andÂ retirement savings plan recommendations. Â A web page outlining the main plan details should be included as an illustration of your plan. Â	50
4	Summarize how your recommendations will address the key points you identified in the second part of your Report (goals and objectives, overall problems and any assumptions).	10