Retirement Plans essays

Retirement Plans essays In today's hyper-competitive world, attracting and retaining the best talent possible is key to competitive advantage. One of the many ways organizations accomplish this is through the implementation of retirement plans for their employees. A retirement plan is an arrangement to provide people with an income, possibly a pension, during retirement when they are no longer earning a steady income from employment, or an asset from which a person may draw an income from as needed (Retirement plans, 2007). This paper will overview the historical development of retirement plans and how they are currently being utilized today as a significant recruitment tool. In today's hyper-competitive world, attracting and retaining the best talent possible is key to competitive advantage. One of the many ways organizations accomplish this is through the implementation of retirement plans for their employees. A retirement plan is an arrangement to provide people with an income, possibly a pension, during retirement when they are no longer earning a steady income from employment, or an asset from which a person may draw an income from as needed (Retirement plans, 2007). This paper will overview the historical development of retirement plans and how they are currently being utilized today as a significant recruitment tool. Historical Overview of Retirement Plans: The American Express Company was the first organization to offer a retirement plan, in the United States, with the first private pension plan, in 1875. Prior to this time, private -sector plans did not exist, as most organizations were small, family-run enterprises. By 1921, the practice had caught on, and the Revenue Act of 1921 was implemented, exempting interest income on profit-sharing plans or trusts for stock bonus, from current taxation. Taxes would be incurred on trust income as it was distributed to employees, when it exceeded th...