The role Social Security play in employee retirement

 

Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Federal and state taxes (State of California) are not the only items withheld from Green Branch Coffee employees’ paychecks. There are other items, such as benefits, the Federal Insurance Contribution Act (FICA), the Employee Retirement Income Security Act (ERISA), and Social Security.

Please respond to the following questions:

What role does Social Security play in employee retirement?
What is the relationship between FICA, ERISA, and Social Security? Include an example of fiduciary responsibility under ERISA.
Describe an example of a retirement planning program that could be implemented for Green Branch Coffee’s employees.

Sample Solution

Social Security is part of the retirement plan for almost every American worker. It provides replacement income for qualified retirees and their families. It also provides valuable social insurance protection to workers who become disabled and to families whose breadwinner dies. Between FICA, ERISA and Social Security, the programs are put in place to protect and help the individuals going in retirement. FICA stands for Federal Insurance Contribution Act. It is comprised of two parts which is the combination of Social Security tax and Medicare tax or hospital insurance tax. The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Having been a part of this multinational company, I know that Majid Al Futtaim is also prone to challenges of globalization in the process of recruitment and selection. For key positions in different regions, the company needs competent professionals who are experienced to work on international posts and manage diversified force working under them. the retirement, leave or turnover of leaders also produce the challenge of succession planning at these positions which can result in better connectivity of all international working units to the mainstream headquarters. Therefore, the diversity of culture is considered carefully in the process of scrutiny. If the employee possess specific talent, has a promising profile and experience; Majid Al Futtaim would prefer to hire the employee even when the cost of his management and setting at workplace is a bit higher than local workforce. This is to alleviate performance gap issues in the future that leads to company’s loss and failure in the market.

The recruitment, induction, and selection process identifies the need of people resourcing and work to get the required talent from the talented candidate market. It is the premium responsibility of recruiter to select the right person for the right kind of job who will fulfill the need of specific skills, knowledge, and abilities in the organization. The capabilities of employees are matched with the requirement of people resource identified by the need assessors. The human resource management department is responsible to adhere to needs of workforce in the organization and report to the concerned authority. We in Majid Al Futtaim would evaluate the report of need and conduct the process for recruiting the candidate. Cultural diversity, workplace culture, the job description, and salary and compensation packages are included in the recruitment process decisions. We in human resource department decided these elements and sent the information to the recruitment committee which further advertise the job accordingly. Even if the recruitment was being done through existing workforce, the determination of salary and compensation is mandatory and considered official duty for the recruiter to

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