It is of perennial importance that each and every company that conducts its operations in the boundaries of the country provides several salary and other perquisites to its employees both during and after the retirement of the employees of the company from the entity. In pursuance of the same the company has ensured that the required retirement benefit is provided to the employees of the company (Sialm et al., 2015). Following are the benefits that are going to be provided by the company to its employees after their retirement from active service or employment with the company:
Automatic full vesting:
An employee who has not been able to enjoy the full vesting in his retirement on the date of the retirement will be allowed full vesting on the date of the separation from the company
80 and out benefit:
In case the employee has attained the age of 50 and in addition to that the summation of the age and the time of service rendered by the employee within the entity is equal to 80 years, the employee fulfilling all the requisite requirement is entitled to receive an Early Retirement Benefit will be equal to 100% of his or her retirement benefit.
There are certain concerns in respect of the retirement policy that is being currently adopted by the company in respect of the employees (Backes et al., 2016). The time period required for the purpose of availing the benefit of the retirement plans of the entity is very huge. For the purpose ensuring more employees are able to avail the benefits the time required for the purpose of availing the benefits must be reduced.
Backes, B., Goldhaber, D., Grout, C., Koedel, C., Ni, S., Podgursky, M., ... & Xu, Z. (2016). benefit or burden? On the Intergenerational Inequity of teacher pension plans. Educational Researcher, 45(6), 367-377.
Sialm, C., Starks, L. T., & Zhang, H. (2015). Defined contribution pension plans: Sticky or discerning money?. The Journal of Finance, 70(2), 805-838.