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I would like you to imagine you have been recently hired and have begun working for a company in the private sector. As part of the company's new employee orientation, you meet with the company's HR benefits counselor (see video) to discuss employee retirement plans. After the orientation, the HRM provides you literature based upon information (see attached document) from the benefit's briefing and asks you choose one of the following two retirement plans:
A defined benefit plan or
A defined contribution plan
For this week's forum, the following are the three questions for you:
1. As the employee, which would you select? Why?
2. As the HRM for the company, which one would you recommend providing to your employees? Why?
3. How important is it for the employee to fully understand the term "vesting" (chapters four and five) as it relates to employer sponsored retirement plans? Explain.
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