How MeraBank lowered pension costs without lowering morale

Article Abstract:

MeraBank (Phoenix, AZ) replaced its previous, 37-year-old profit-sharing plan, due to corporate expansion. The 'Profit Plus' plan is popular among employees and saved the bank $1 million in its first year. Profit Plus includes two parts. Part 1 is the introduction of a defined contribution money purchase plan with a yearly deduction of two percent of wages. Part 2 is a modified profit-sharing plan, which includes a 401(k) feature permitting employees to set aside up to 10% of pretax wages, not to exceed $7,000 annually. MeraBank's contribution to the latter is 50% of the first six percent of employee contributions. Vesting schedules were changed to allow immediate vesting of 401(k) contributions, with the old vesting schedule in effect for the rest of the plan. Executives and officers were offered the option of non-qualified deferred compensation plans.

Savings Institutions, Human resource management, Savings banks, Profit sharing, MeraBank F.S.B.

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Build the wow-factor into pension training

Article Abstract:

Employers need to educate their employees about pension management. Given that employees are increasingly being asked to take control of their pensions, it is only right that they are first given the necessary information and skills before finally allowed to handle their investments. However, even if they do need the know-how, employees will not automatically welcome pension training if it is not given in an interesting format. To make sure that employees enthusiastically receive their pension training, employers should consider the use of multimedia, which involves a combination of text, graphics, audio and video. The use of multimedia ensures that investment education is tailored to the specific needs of the company and the users. The multimedia system of Engelhard Corp. is discussed.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Usage, Study and teaching, Multimedia technology, Multimedia systems

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Fulfilling Pension Obligations

Article Abstract:

Employers have an obligation to their employees to continue contributing to a pension plan even when the labor agreement expires. For an employer to make any changes in its contributions to employee pension plans, he must present a proposal to the union and then obtain a waiver from the union or else bargain with the union to make changes. Court cases are presented as examples of employer obligations to employees.

Finance, Pensions

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