One strategy that organisations can put in place to keep employees well motivate is to have a retirement plan for the staff. Such companies have low turnover rates because every employee will want to work in such a company. A well-analysed retirement plan has a wide range of benefits. Every company needs to identify a suitable retirement plan to ensure that its employees enjoy the full benefits of the plan (IRS, 2017). The plan an organisation adopts depends on its specific needs. Explained in this proposal, are two IRS/ERISA qualified retirement plans that would apply to a 3-year old organisation that has 200 employees.

401 (k) Plans
The 401(k) is methods that most organisations use because it is not expensive to establish and maintain it. According to IRS (2017), the method is not only applied in established businesses but start-ups and relatively small business entities. Any company that has 25 employees and above qualifies for this plan. Another requirement is that every employee in that company should have worked for a minimum of 1000 hours in one year.

The plan needs to satisfy the Actual Deferral Percentage test. More so, an employee can choose to have their employee give a specified percentage of their salary to the plan, usually 3% of their salary (IRS, 2017). The company distributes the deferred amounts to specific events, such as termination of employment, death, and getting to the age of 60 years, to name a few. The contribution limits also vary between high-earning and low-earning employees (IRS, 2017). Most exciting of the requirements is that an employee can top up the employer’s contribution.

Well-defined Benefit Plan
This is a retirement plan that is employer-sponsored. There is a formula that companies use to calculate employee benefits, in which several factors such as the amount of salary and age, are considered (IRS, 2017). The company determines what investments to make on behalf of the employee, meaning that it also assumes all risks of the investment. A key requirement of this plan is that the employee must have worked in the company for a specified number of years (IRS, 2017). Hence, the younger employees’ defined plan benefit is lower than that of older counterparts. The payments are in three different ways, one being in a single life annuity, and another a qualified joint and survivor annuity (IRS, 2017).

Communication Plan
The targeted audience for this proposal is 200 employees. It is essential to communicate the benefits of having a retirement plan, to encourage them to enrol in one of them. Best way to communicate will be to send a Memorandum to all employees and open a discussion platform where they can air their opinions, and ask questions, after which, they can make informed decisions.