Information About Company Savings Plan
November 7th, 2010 | Published in Announcement Letter
One of the most popular benefits offered by many companies to their employees is a company savings plan that helps them save for their retirement. When companies set up such savings plans, they usually send employees a letter informing them of the plan. Such letters are short and to the point, since they are mainly informative in nature.
A brochure may also be included with the letter that would go into the plan in greater detail. They are usually form letters not addressed to individual employees, although the name of a particular employee may be typed next to the opening salutation.
The important elements of a letter informing employees of a company savings plan are the details of the plan and the date when it will start to be implemented. The letter should also state if participation in the plan is mandatory or on a voluntary basis.
Below is a sample of a letter announcing a company savings plan that can easily be adapted to a writer’s particular needs.
Sample Letter
June 25, 2010
Subject: Company Savings Plan
To everyone concerned,
Greetings!
As you may know, our company has been searching for a way to help our employees save money for their retirement. In line with this, we have signed up with Savings Plans, Inc. to implement a company savings plan, which will begin starting July 15. Employees can contribute as much as 50% of their annual compensation on a before-tax basis, which will be matched by the company on a 25% basis.
However, this is not necessarily fixed and an employee can adjust the amount of their contributions by notifying the accounting department a month in advance. The full amount of an employee’s savings can be withdrawn upon their retirement from the company, or when they reach 65. They can also take out loans against the amount of their contributions to the plan.
Statements will be provided on a monthly basis to allow them to monitor the status of their savings. Participation in the plan is mandatory.
For further details on the plan, please read the accompanying brochure. If you have any further questions, you can consult with Rhonda Johnson at the Accounting Department.
Respectfully yours,
Jason Houseman
Vice President, SBJ Inc.