A Ryan worker after the golden years
An in-depth look at the Ryan Retirement Investment Plan for
non-collectively bargained employees
Introduction
The Ryan International Airlines, otherwise known as the “air capital of the world,” is known for its experienced team of aviation professionals committed to providing safety, service, and performance in its everyday operations. For over 27 years, this Wichita, Kansas-based Company has provided scheduled and unscheduled cargo and passenger charter services to many clients around the world.
Starting with only a few small Lear jets, Ryan has now grown to a fleet of over 60 transport category aircraft, flying people throughout North America, the Pacific Rim, Central America, the Caribbean, Europe, and the North Atlantic. Moreover, Ryan also ventures into cargo shipping by providing contract cargo services for Emery Worldwide, as well as the United States Postal Service.
Of course, behind the dynamic operations and evolution of Ryan Airlines all throughout these years is a similarly dynamic and highly competent team of aviation professionals. Being at the forefront of the company’s day-to-day challenges in operations, Ryan employees not only deserve competitive compensation and benefits, but also a sound retirement scheme to insure their financial security even when they have decided to take a permanent leave from the company.
Statement of the problem
This study will probe deeper into the Ryan retirement investment plan for non-collectively bargained employees to determine the extent of the company’s willingness to provide for their employees’ retirement plans.
Specifically, this study will probe deeper into the following questions:
1. Who are eligible to the retirement scheme?
2. What are the salary deduction features of the plan?
3. How much will the company pay for as its counterpart in an employee’s retirement plan?
4. Aside from being a retirement plan, does the scheme offer other features such as savings, etc.?
5. Can funds contributed to the retirement scheme be used to invest in other business ventures?
6. Can an employee avail of the retirement pay if s/he becomes disabled?
Nature and significance
It is a universal belief that the quality of personnel makes or breaks a company’s future. With this, it is but fitting to provide employees with the motivation and adequate working environment that they need, and more importantly, the compensation and benefits – and ultimately a sound retirement scheme. A good retirement scheme for any given company’s long-time employees does not only provide financial security for the retiree, it is also a company’s way to appreciate and to give additional incentive to the retiree’s years of devotion and hard work. With this, the researcher finds the need to probe into Ryan Airline’s retirement scheme for its non-collectively bargained employees to draw general conclusions on how companies of the same nature “show their appreciation” in providing for their employees’ much-deserved retirement schemes. Coupled with comparisons of retirement schemes offered by similar companies to their employees, results of the study will reflect the companies’ prevailing policies, with its limitations and add-ins, on retirement plans – specifically for non-collectively bargained employees who lacked the backing of any employee organization/union. Study results could then serve as basis for further policy analyses of retirement plans for non-collectively bargained employees.
Review of related literature
With increased media attention and focus on retirement plans, more and more employees perceive these plans as a valuable benefit. As Mathiasen (1952) put it, “the sudden realization that efforts to treat disease or to eradicate it were so successful as to extend materially the span of life has presented to the nation a problem of extreme importance dealing with population pressures.”
In recent surveys, retirement plans rank as important–or even more important than health benefits– in choosing between potential employment opportunities, and as a job satisfaction consideration. Employers have come to realize the need to offer a retirement program to both attract and retain good employees. Now, more than ever, there has emerged a variety of ways to save for retirement on a tax-deferred basis. In addition, the business can deduct the following costs for tax purposes: any 401(k) matching contributions; ongoing plan expenses; and any profit sharing or employer contribution (Retirement Plan Strategies, 2003).
In a similar study, Steer (1997) said that investments in qualified retirement plans are generally an excellent means to accumulate retirement funds on a tax-deferred basis. Plan contributions are tax deductible (within limits) by contributors and tax deferred to participants, thus allowing for accelerated build-up of retirement benefits.
However, Steer cited several disadvantages of the above-mentioned plan contributions. He said that qualified retirement plans possess certain disadvantages, including: a 15% excise tax on excess distributions or accumulations under IRC section 4980A; potentially higher marginal income tax rates on plan withdrawals, and mandatory contribution requirements for employers. In addition, qualified plan assets are subject to estate taxes at death. Moreover, since they are items of income in respect of a decedent, no basis step-up is permitted. Consequently, substantial income tax liability may be incurred by plan beneficiaries.
Methodology
This study will undertake a descriptive research mode that will mainly involve a literature search on Ryan Airline’s policies on retirement plans of non-collectively bargained employees. Interviews on the matter at hand will also be carried out with selected concerned employees, as well as with representatives from the company’s management.
The researcher chose the qualitative research method since there has to be more descriptive accounts of the subject matter, and a deeper understanding of the phenomena of interest from the respondent’s eyes. Moreover, a qualitative approach to research, and in this study, the interview method, can create a sense of openness from the respondents, thus creating the opportunity and possibility to generate new theories, and possibly recognize phenomena ignored by most other studies done in the past.
References
Mathiasen, Geneva. 1952. Criteria for Retirement: A Report of a National Conference on Retirement of Older Workers Held at Arden House. pp.3.
Ryan International Airlines. 2003. flyryan.com
Retirement Plan Strategies, Inc. 2003. Why offer a retirement benefit?
Steer, Paul. 1997. Retirement plan contributions and withdrawals, in The CPA Journal. Volume: 67. Issue: 8. pp. 38-50.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment