Access to cash: the debate
Article Abstract:
Pension plan sponsors have the unfounded fear that employees would abuse retirement plans if they had daily access to funds. Daily transactions can prevent the problems caused by the delay in transferring funds, which is characteristic of traditional retirement plans. With daily transactions, funds are transferred on the day that the transfer request is made. Employees may be tempted to react to short-term market trends, but research indicates that abuse is rare. Employees with the capability of making daily transactions have more control over their plans, as well as increased satisfaction. Employers can prevent the abuse of retirement plan participants by restricting the number of transactions permitted each quarter, and educating employees about the advantages of long-term investment strategies.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1991
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Shadow 401(k) plans
Article Abstract:
Shadow 401(k) plans are becoming more popular as the cap on employee elective deferrals under qualified 401(k) plans has increased. Shadow 401(k) plans are one type of deferred compensation plan for officers and highly compensated employees. The most attractive funding option for shadow 401(k) plans is a rabbi trust, but employers should be aware of problems, such as replicating the underlying investment alternatives and returns of qualified 401(k) plans. Non-qualified shadow plans do not have any vesting requirements, and employers have several alternatives in structuring a vesting vehicle.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1991
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Pension maximization
Article Abstract:
Two hypothetical case studies are presented to illustrate the benefits of pension maximization (PM) as a financial planning method for managing employee pensions. The concept connected to PM is that employees want to realize the maximum income possible from pension benefits earned during the years they are employed. PM programs utilize life insurance as a tool so that employees can tailor insurance coverage to develop plans designed to meet individual needs for the present and the future.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1990
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