Employee Pension Plan Templates

It doesn’t matter how much you love to work and how much money you are making currently but time will come when you won’t be able to work anymore and you will have to decide to retire. After retirement, you won’t be able to work and thus there won’t be any way for you to make any money other than depending on old age benefits from the local government which isn’t that fascinating as it sounds.

This is why it is really important that when you work for a company, you have the benefit of employee pension or retirement plan offered by your employer. This plan will not only gives you ease to retire whenever you want but it will also provide you enough money after your retirement that you can either start your own business on a small level or you can just invest the money in some business and get the easy profit each month.

Most Common Pension Plans to Choose From:

1.     Salary Reduction Simplified Employee Pension Plan:
This is one of the simplest and most preferable plan from employers for their workers. Basically in this plan the company deducts a certain amount of money from the monthly salaries of employees and saves that money for pension and retirement plans. We can say that in this plan, the employees are the ones who are saving their own money and the employer has the role of just investing the money in some good business and increasing the savings for the employees.

2.     Payroll deduction IRA:
This pension plan is similar to the above one and it’s applied when the employer doesn’t want to provide any resources for the pension and retirement plans for the employees but certainly allows his workers to deduct a certain amount from their payroll and invest in an IRA plan. This plan is used in small or local businesses with lesser resources and fewer profits.

3.     401K Pension Plan:
This is kind of a mutual retirement plan for employees in which the workers and the employees contribute in the savings and with the money saved, the employer invests it in a business and makes profit for the employees.

4.     Profit sharing Pension Plan: 
This is a pension plan in which the employer and employees contribute mutually but the amount for either contribution is not fixed. The employees can deduct as much amount from their salaries as they want and the contribution from the employer is also not fixed but depends on each employer. The element that makes it different is that when the employer invests the money and makes profit, both he and his employees share it.

5.     Defined benefit Pension Plan: 
This is the plan that is most preferable by the employees as they don’t need to deduct any money from their salaries or worry about investing the money in any business but the entire process of saving money for employees and investing it is done by the employer.

Here is preview of a Free Sample Employee Pension Plan Template created using MS Word,