NAME: Reynier I.

Jordan, REE
Student

CURRENT STATE PATTERNS AND ASSUMPTIONS DESIRED STATE

STRENGTH • Technology affects several jobs in the company that • Expand the business that will increase revenue
• MBA Trust Company had grown quite cause elimination of job responsibilities of employees. and sales
rapidly and adapted technology Since there is an existing company policy in regard to the • Realignment of all outdated job responsibilities
firing of employees. The new president wants to revise affected by technology.
• Established company that had almost the existing policy and implement the two new policies. • Reorganization if most of the job
25 years of operation responsibilities are outdated
• It is difficult for department heads to make early • Implement scorecard system and evaluate the
WEAKNESSES retirement decisions for outdated employees neither performance of the employees
• There are two largest expense items on the because most of the longtime employees are • Implement the Policy to achieve the following
balance sheets of most banks are interest experienced in the field. Work. objectives:
expense and salary and fringe benefit 1. Reduce salary and benefit costs.
expenses • In addition, they are often the people holding key 2. Redirect positions to focus on priorities,
positions in the company. Unlike their younger and changing needs or strategic objectives.
• Technology caused several job changes and sometimes indecisive counterparts, older employees are 3. Achieve cost savings and organizational
the elimination of others responsibilities. known for their strong work ethic, loyalty, and increased efficiencies
tenure. They also bring a different perspective, 4. Early retirement would create internal job
experience, and strong communication skills, meaning opportunities or unblock promotion channels
their contribution is valuable and can complement which succession planning could fill through
younger members of the team nicely. an internal appointment
OPPORTUNITIES
• Less time required to accomplished work
• As the workforce ages, it becomes more experienced, • Top management shall ensure that the
output due to technology
and greater experience is generally associated with responsibilities and authorities for relevant roles
• Early retirement would create internal job
higher earnings and productivity. But an aging workforce are assigned, communicated, and understood
opportunities or unblock promotion
might also experience deterioration in the relevant skills within the organization. Top management shall
channels which succession planning could
if job requirements change over time or if people's skills assign the responsibility and authority for ensuring
fill through an internal appointment decline. that the integrity of the quality management
system is maintained when changes to the quality
• Employee can receive some significant tax • Retirement plans will affect the mindset of all employees management system are planned and
advantages comes from MBA Trust since it is a valuable benefit that impacts the present and implemented.
company because Government wants to
future employees, and it also impacts the company too.
encourage employers to provide retirement
 benefits to employees. If the plan is based • Ensure that the quality policy and quality
on profits, the plan may enhance employee objectives are established for the quality
motivation and productivity management system and are compatible with
the context and strategic direction of the
• Retirement benefits may give you a organization;
recruiting advantage. If your business has
high start-up costs or little cash on hand, • Communicate the importance of effective
you can use a retirement plan to quality management and of conforming to the
supplement your compensation package. quality management system requirements;
Again, you can use the plan to save for your
own retirement OPTIONS
• Ensure that the responsibilities and authorities
THREATS • There must be a realignment of all outdated job
for relevant roles are assigned, communicated
responsibilities affected by technology.
and understood within the organization.
• The president wants to implement the two • Identify the new job required by the company.
new policies. One of these he thought of as • Promote the use of the process approach and
a short-term policy subject for new Condition: If the company identified most of the
risk-based thinking;
employees. The other, which he wanted to departments needed a realignment, then it required to
be a permanent policy, was an early implement a reorganization
retirement program designed “to eliminate
obsolete older employees”. • Create a process and job requirements in the
realignment/reorganization. It will motivate the
• Policy will affect the mindset of the Employees to expand their learnings
people holding key positions in the
company. If they follow the proposed
early retirement policy, the company will
accidentally lose people who have been • Implement scorecard system/strategic planning per
dedicated to the company. department to scrutinize the needs of the company.

• Management will accidentally lose

great contract service or temporary
• Apply Human resource management training esp. for
employee since it may affect the
the 50-54 older workers since they have a problem
mindset of that employee. In some
in productivity, adaptability, and trainability with regard
reason of that they will realize that
to the new technology
possibly management will not promote
 them as regular employee

• New president must consult the two policies in the

• Setting up and administering a plan can be company Legal counsel. this is to elucidate if the policy
time-consuming, complicated, and costly. had no violation in the Department of Labor. moreover,
it must be majority approved by the Board of Directors
• The cost-price squeeze affected the banking
industry, and the bank was no exception.

• Providing a plan can (and most likely will)

require professional assistance, which can be
expensive. Pension rules are complex, and the • Create a program implementation for the expansion of
tax aspects of retirement plans can also be the business that will increase revenue and sales.
confusing if not analyze prudently.
• Implement some incentives program to address the
plans and goals of the company also to motivate all
employees

STRATEGIC CHOICE
• SWOT analysis
• Corporate strategy
• Directional strategy
• Financial Strategy
• Human Resource Management (HRM) Strategy
• Growth Strategy
EVALUATION & CONTROL

• Make sure that the technology is user-friendly

• Monitor the work output of all employees affected by the
technology.
• Create an employee survey form in pertains to the new
technology
• Evaluate the performance of the employees based on their
work plan.
• Audit department must monitor, evaluate and check all
operations affected by the advancement of technology.
• Institutional Services Department must identify all
employees needed to be train.

• The organization shall determine which quality elements

shall be monitored and measured.

• Methods for monitoring, measurement, analysis, and

evaluation shall be determined.
• The methods shall define which activities are needed to
ensure valid results of monitoring and measurements

• The methods shall define the stages and the intervals in

the process when activities of monitoring and
measurements must be performed.

• The methods shall define when results of monitoring and

measuring shall be analyzed and evaluated.

• The results shall enable the evaluation of the performance

and the effectiveness of the QMS.

• Documented information on the results of the monitoring,

measurements, analysis, and evaluation shall be retained.
MBA TRUST COMPANY EARLY RETIREMENT POLICY

1 Definitions. For purposes of this Policy, the following terms shall have the meanings set forth below:

A. “Benefits” shall mean those benefits provided under this Policy

B. “Company” shall mean MBA Trust Company.

C. “Eligible Employee” or “Employee” shall mean an employee who has satisfied all of the conditions and
requirements.

D. “Final Monthly Salary” shall mean an Employee’s taxable wages for the last full calendar month of
employment with the Company prior to retirement, as determined by the MBA Trust Company.

E. “Release and Separation Agreement” shall mean the release and separation agreement the Company
provides an Employee as part of this Policy.

G. “Years of Service” shall mean consecutive twelve (12) calendar month periods during which the
Employee has been continuously employed by MBA Trust Company. full-time (at least 40 hours per week), as
determined by MBA Trust Company. A full-time Employee shall be given credit for a full Year of Service for the
last year of service with the Company, regardless of the actual time employed with the Company during that last
year. For example, an Eligible Employee who has consecutively worked five (5) years and three (3) months for the
Company will be given credit for six (6) Years of Service. In addition, an Eligible Employee who has worked less
than one (1) year with the Company will be given credit for one (1) Year of Service. For example, an Eligible
Employee who has worked three (3) months for the Company will be given credit for one (1) Year of Service.

1 INTRODUCTION
1.1 This policy is designed to assist employees who are considering or have taken the decision to retire from service and outlines the
options available and support that can be expected from management.

1.2 This policy applies to all employees of the MBA Trust Company regardless of their length of service, and should be read in
conjunction with the MBA Trust Company Discretionary Policy Statement.
1.3 In line with legislative changes which came, MBA Trust Company does not have a normal retirement age for its employees.
There are however, a number of options available to staff from the age of 55+ years, in terms of the pension benefits they may
be eligible to receive.
2. EQUALITY STATEMENT

2.1 In applying this policy, the organisation will have due regard for the need to eliminate unlawful discrimination, promote
equality of opportunity, and provide for good relations between people of diverse groups, in particular on the grounds of the
following characteristics protected by the Equality Act age, disability, gender, gender reassignment, marriage and civil
partnership, pregnancy and maternity, race, religion or belief, and sexual orientation, in addition to offending background,
trade union membership, or any other personal characteristic. An Equality Impact Assessment is used for all policies and
procedures.

2 FLEXIBLE EARLY RETIREMENT (AGE 55 ONWARDS)

2.1 An employee can opt to retire voluntarily from the age of 55. In accordance with the terms and conditions MBA Trust Company
an employee who is aged 55 or over has the right to request Flexible Retirement. This option is aimed at assisting employees in
easing themselves into retirement and allows employees to continue working whilst receiving their pension benefits
2.2 Applications for flexible early retirement are conditional on the MBA Trust Company consent. For employee’s under the age of
60, MBA Trust Company will be liable to meet additional charges and the employee’s pension will be paid at a reduced rate.
2.3 Employees who meet the following criteria have the right to retire early under the 85 year rule if:
(i) They are age 55 or over; and
(ii) Their age and length of service equals 85 years or more;
(iv) They have at least 10 years continuous service with MBA Trust Company at the date of leaving.

2.4 If employees retiring under this condition are 60+ years old there will be no additional charge made to the employer.
2.5 For employees under age 60 MBA Trust Company may consent to the immediate payment of retirement benefits. Augmented years will not be
awarded.
2.6 Any request to retire under this condition must be made in writing to the Head of Human Resources and Organisational Development.

3 BENEFITS. Benefits under this Policy will be paid only if the Company decides in its discretion that the Employee is entitled
to them.

A. Basic Benefit. Under this Policy, an Employee shall receive Benefits equal to one (1) times Final Monthly Salary for
 every Year of Service, subject to the following minimum and maximum. An Eligible Employee will receive a
minimum of six (6) times Final Monthly Salary under this basic Benefits option, regardless of his or her Years of
Service. For example, an Eligible Employee who has only one (1) Year of Service will still receive six (6) months of
Final Monthly Salary under this basic Benefits option. Notwithstanding the above, an Eligible Employee will
receive a maximum of twenty-four (24) times Final Monthly Salary under this basic Benefits option, regardless of
his or her Years of Service,

B. Bonus Benefit. Under this Policy, an Eligible Employee shall receive any bonus earned but not yet paid under the
Company Bonus Plan at such time as any bonus is paid to Company employees. This bonus payment will be paid
to each Eligible Employee even though not a Company employee at the time of actual payment.

4. RETIREMENT SCENARIOS

4.1 The following scenarios are designed to illustrate the pension benefits/ entitlements available to staff retiring on the following grounds:
(i) Scenario 1 (Early Retirement):
Employee A is aged 62 and has 20 years service. They have expressed an interest to retire on their 63rd birthday. Employee A is required to give their
contractual notice period to do so. The employee will bear a reduction in their lump sum and annual pension to account for the early withdrawal
from the pension scheme because they do not meet the 85 year rule.

(ii) Scenario 2 (85 Year Rule):

Employee B is aged 55 and meets the conditions of the 85 year rule their age and length of service is equal to or more than 85. They apply for early
retirement under the 85 year rule by requesting this in writing to the Human Resources Manager. If consent is given Employee B must give one years’
notice of their intention to retire under the 85 year rule. The employee will receive their lump sum and pension benefits accrued according to their
length of pensionable service
.

(iii) Scenario 3 (Flexible Retirement):

Employee C is aged 57 and has gained authorisation to retire under the Flexible Retirement Scheme. Upon retirement, Employee C may receive a
reduced lump sum and annual pension due to the early withdrawal from the pension scheme. This reduction will apply if the employee does not
meet the 85 year rule and there will be an additional charge to the council.

5. Payment of Benefits. An Employee must choose on the Election Form a Benefits payment option. This election will be irrevocable and must be
made before the Employee signs the Release and Separation Agreement. The Employee must choose one of the following three payment options:

A. Lump-sum Payment. The Employee may elect to receive a single, lump-sum payment of his or her Benefits as soon as
administratively feasible after the Employee’s retirement, but no sooner than seven (7) days after the Employee returns to the
 Company the Election Form, Release and Separation Agreement, and Non-Compete Agreement (for enhanced Benefits).

B. Lump-Sum Payment at Future Date. The Employee may elect to receive a single, lump-sum payment of his or her Benefits at a
date the Employee designates on the Election Form, but no later than twelve (12) months after his or her retirement date from the
Company. The Company will not pay interest on this lump-sum amount.

C. Installment Payments. The Employee may elect to receive his or her Benefits in equal, monthly installments over a period of
months the Employee chooses. This period may not extend beyond twelve (12) months after the Employee’s retirement date from the
Company. The Company will not pay interest on these installment payments.
All payments made under this Plan are subject to applicable income, employment and other taxes as may be required under any law or regulation.

8. PROCEDURE

8.1 In the first instance any employee wishing to apply for any of the flexible retirement options detailed above should discuss this with their
manager.
Following initial discussions the Pensions Officer should be contacted to verify current details of a member’s contributions and to obtain information
of the financial implications for a flexible option for the member.

8.2 If the employee decides to apply for flexible retirement they should submit a formal request in writing to their line manager (under the flexible
working policy where appropriate). The organisation would then examine the facts and try and reach a solution that would:
a) meet the needs of the individual.
b) ensure service requirements are maintained.
MBA TRUST COMPANY TEMPORARY EMPLOYEE POLICIES AND PROCEDURES

I. TEMPORARY EMPLOYEE PERSONNEL POLICY

Before temporary employees are hired, the appropriate campus should ensure that the employment of temporary personnel is essential and the
work assignment cannot be performed by regular employees, or the work assignment is most prudently assigned to temporary personnel. Before
temporary employees are hired, efforts should be made to allocate the work among present classified staff.

The service of a temporary employee may be discontinued by the employing supervisor at any time.
Temporary Employees are not in a collective bargaining unit and do not enjoy any of the contract rights granted to
unit employees. Specifically they are not eligible for MBA Trust Company fringe benefits (vacation, paid holidays, comp time,
etc.), salary increases, reclassification, or for shift differential pay.

Temporary Employees are not granted preferential treatment based on their employment with the MBA Trust Company if they
apply for a permanent position.

Temporary Employees shall be provided rest periods and non-paid lunch breaks as required by law.

II. DEFINITIONS
All Temporary employees:
o in paid status for more than 124 work days or 1000 hours
o may work no more than 180 days in a fiscal year or whichever comes earlier depending on the limitation specified
in the types of assignments (see below).

TYPES OF ASSIGNMENTS
Temporary Substitute (T4) - any person employed to replace a classified employee who is temporarily absent from duty. (i.e. Working-out-of-class,
staff development leave, leave of absence, medical leave).

o The position must be a budgeted position.

o The temporary employee filling the position must meet minimum qualifications specified on the regular classified job descriptions of the
permanent position.
o There must be an employee who is temporarily absent from the position - on paid or unpaid leave.
o A substitute can be employed for no more than 180 work days. However if the permanent employee is absent for more than a fiscal year, the MBA
Trust Company may hire another substitute employee to replace the substitute employee who was terminated prior to reaching the 180 work day
limit

o The substitute cannot exceed the period of absence of the permanent employee.

Temporary-in-vacancy (T2) - any person who is employed to fill a vacancy. An hourly person cannot fill the
vacancy for more than 90 calendar days.

o the position must be a budgeted position.

o Must have a permanent recruitment staffing requisition

o the temporary employee filling the position must meet minimum qualifications specified on the regular

o A person can be employed for no more than 90 calendar days.

o A Temporary-in-vacancy, assuming all of the duties of the vacant position, is paid at the designated
classification level of the position at

Calendar Days - Days in calendar year including holidays and weekends.

Work Days - Days worked in paid status.
Fiscal Year - Term from July 1 through June 30.

IV. DEPARTMENT PROCEDURES

• Each Supervising Manager must establish guidelines regarding employee conduct, performance standards/evaluations, procedures for collecting
time cards, etc. as long as guidelines are reasonable and do not conflict with overall MBA Trust Company policies. A Supervising Manager may dismiss
a temporary employee at any time without cause.

• The Supervising Manager is responsible for communicating and enforcing department and MBA Trust Company safety
practices. General safety guidelines are attached to the Temporary Employee packet.